Tax Faculty calls for further tax reform
The English ICA has said that the Inland Revenue should bite the bullet and undertake root-and-branch simplification of the tax system.
Commenting on the Inland Revenue’s consultation paper Simplifying national insurance contributions for employers, the institute’s Tax Faculty broadly welcomed the proposals to simplify NICs but claimed the Revenue has missed an opportunity to ease the regulatory burden on smaller businesses.
Technical Manager at the Tax Faculty Peter Bickley said: ‘The Revenue’s proposals are to be welcomed, but more could have been done to simplify and harmonise tax and national insurance contributions.
‘This is particularly the case with cash payments, credit cards, vouchers and pecuniary liabilities, which are not only amongst the most common benefits but also the most complicated – especially for smaller businesses who do not have automated systems in place.’
He added: ‘A more radical approach would have been to conduct a root and branch reform of the tax system, including a review of the contributory principle.’
Support grows for NICs and tax merger
NEW CONSULTATION ON SIMPLIFYING NATIONAL INSURANCE CONTRIBUTIONS RULES FOR EMPLOYERS