ICAEW calls for simplified tax system

ICAEW calls for simplified tax system

The ICAEW has called on the chancellor to 'reduce the burden on small businesses', in particular by 'seriously considering' merging the PAYE and NIC tax systems in his pre-Budget report.

The institute cited red tape and an over complicated tax system as threats to the growth of enterprise and called on the government to review ‘pay as you earn’ and national insurance contributions tax systems.

Institute president Michael Groom said taxpayers deserved a simple and transparent regime.

‘So why not come clean and investigate ways to merge PAYE and NIC?,’ Groom asked of Brown.

‘Smaller businesses would benefit by not having to spend hours of their valuable time administering a payroll system that is mind-numbingly complex due to the rules regarding the different tax and NIC treatment of non-monetary items such as employee benefits,’ he added..

Groom said the current system acted as a ‘disincentive to SMEs to take on new staff.’

The ICAEW called on Gordon Brown to ‘take action’ to ensure SMEs can create new jobs.

And in another ‘enterprise’ plea, the institute’s tax faculty also called for the chancellor to create a level-playing field in respect of the tax treatment of incorporated companies and unincorporated businesses.

It said changes to capital gains tax rules should ensure business behaviour is not distorted for tax reasons. The tax faculty also welcomed ‘in principle’ the introduction of an R&D tax credit as a means of helping the UK stay competitive internationally.

Links

Pre-Budget spotlight on public sector

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource