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It’s one step forward and two back on tax simplification

The Association of Chartered Certified Accountants claims the government is not succeeding in its efforts to simplify the taxation system in the UK. The organisation says the coalition is taking one step forward and two steps back.

Since coming into office last year, the government has made 200 tax code [1] changes, even though they promised to give us an easier, more streamlined tax environment.

ACCA’s head of taxation, Chas-Roy-Chowdhury, said the number of alterations that have been made means the coalition takes one step forward followed by two back in its efforts to simplify the UK’s complex tax system.

UK contractors have been affected by a number of these changes but the one change that is most sought after still remains. IR35 [2] is still with us, although the government has pledged to overhaul it and improve its administration.

David Gauke, the Exchequer secretary, recently reiterated his commitment to improving IR35 after acknowledging that contractors in the UK are significant and important people in the business community.

Gauke explained that HMRC is going to completely overhaul the way it administers IR35. This issue has to be got right if we are to provide a fair tax system that enables professional contractors to provide their services in the best possible way.

Chris Bryce, the chairman of the PCG [3], said he was pleased the Minister had made this personal commitment and that he recognised the major difficulties that have faced freelancers for the past 11 years.

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Image: I Fought The Lawn … And The Lawn Won [4] by JD Hancock

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