MPs warn of rising tax compliance costs

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This plea follows a survey by the Institute of Directors which found that 78% of its members believed the amount of time and money spent on tax-related paperwork had increased, according to the FT.

MPs said the Inland Revenue and Customs & Excise had ‘failed so far to establish the actual overall administrative costs of tax compliance incurred by business’.

The tax departments are also being urged to undertake a more accurate calculation of compliance costs, ‘in the absence of any reliable method of measurement’.

Michael Fallon, chairman of the Treasury sub-committee that undertook the inquiry, said: ‘A deliberate and determined effort should be made to harmonise pay as earn and national insurance contributions and to reduce the complexities of statutory sick pay.’

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