Workers on lower or middle incomes should be encouraged to take up pension schemes through flexible pension arrangements, it argues. The institute also wants the scrapping of plans to impose a lifetime cap linked to both contributions and investment growth.
Eric Anstee, chief executive of the ICAEW, is concerned that people are not being encouraged to make adequate pensions provisions. ‘Many of the current problems stem from the government removing the repayment of tax credits on pension funds in 1997. We would like to either see this reinstated or government contributions matching those on lower incomes,’ Anstee commented.
Early tax returns should earn a financial incentive, and ‘check and sign’ tax returns should be implemented, said the ICAEW. It also argues for a hold on a merger between the Inland Revenue and Customs and Excise, plus the need for more tax experts in at policy stage of changes to the tax system.
Mark Lee, chair of the ICAEW tax faculty commented: ‘Tax policy is not always being translated on the ground, often due to insufficient consideration of the operational issues that will arise.’
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states