“Don’t chop and change tax rules”, warns CBI

“Don’t chop and change tax rules”, warns CBI

The CBI warns further major tax changes could damage certainty and stability

THE GOVERNMENT should refrain from making further significant changes to the tax system if it wishes to foster a culture of stability and certainty, according to the CBI.

Instead, the confederation said, it should allow recent positive reforms on the headline corporation tax rate, the taxation of foreign profits and the introduction of the Patent Box to take effect.

Alongside scaling back on further change, the CBI is calling for the government to make several small, targeted improvements to the tax system. They include introducing capital allowance for infrastructure investment, capping business rates at 2% at the very least – until full reform is possible – and reducing employers’ national insurance contributions to boost jobs.

In its report Tax in a global economy: the way forward, it warned “constant chopping and changing of the rules risks scaring off business investors”.

CBI chief policy director Katja Hall (pictured) said: “The government has taken action to make the UK’s tax regime more competitive and now needs to let the changes bed down and take effect.

“But the government could make targeted changes to improve competiveness – a new capital allowance to boost infrastructure spending, a cap on business rates to support the high street and reduced employers’ National Insurance to encourage jobs.

“Some international tax rules also need updating to reflect today’s changing global business environment. But as the UK seeks to shape this agenda it must not crush recent competitive gains. We must coordinate reforms with other countries so UK firms are not disadvantaged.”

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