Categorized | news

Cost of collecting tax reduces by just 2% since 1958!

Cost of collecting tax reduces by just 2% since 1958!

Although technology has advanced immeasurably over the last 50 years, the cost of collecting tax remains virtually the same as it was half a century ago!

Research conducted by the TaxPayers’ Alliance shows that there has been hardly any change in the cost of raising each pound of tax in the UK since 1958. In 1958, it cost £1.16 to raise £100 worth of tax revenue – in 2008 it cost £1.14, just 0.02p less. According to the TPA this proves that the tax system in the UK is too complicated. Furthermore, other OECD nations manage to collect their taxes a lot more cost efficiently than HMRC does.

TaxPayers’ Alliance Director, Matthew Sinclair, said it’s unbelievable that the cost of collecting tax has not gone down in half a century. There have been so many technological innovations that you would think HMRC could have found ways to reduce the cost. He went on say the tax system in the UK is broken and causes just as many problems for the Revenue as it does for taxpayers.

In 1967, the first handheld calculator was invented. By 1971, we had the microprocessor and by 1985 Microsoft Windows came into being. The World Wide Web was invented in the 1990s and yet, despite all these time saving innovations, HMRC has only managed to reduce the cost of collecting tax by 2%!

It does make you wonder what has gone wrong. So many transactions now take place in real-time thanks to the Internet, computers have done away with the need for vast armies of people slaving over calculators, and yet there’s still been no noticeable reduction in the Revenue’s costs. The powers that be should be asking why.

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: soma dispenser by Idle Type

Be Sociable, Share!

More on this topic: Tags: , ,

Print This Post

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice