The majority of Institute of Chartered Accountants in England and Wales (ICAEW) members want the UK Government to make tax simplification a legislative priority.
The organisation asked members what policies ministers should focus on ahead of next month’s King’s Speech and local elections. More than 430 members responded, with 90% saying the government should prioritise legislation to simplify the UK tax system.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
ICAEW chief executive Alan Vallance said: “Our members have told us overwhelmingly that they want the government to commit to legislation to simplify the tax system, which is recognised to be one of the most complicated in the world.
“A simpler tax system would mean fewer disputes about whether marshmallows are food or confectionery, would reduce the personal tax cliff edges that reduce productivity and would make it easier for companies to have clarity on employment status.”
The institute has repeatedly pressed for a formal road map and strategy for tax simplification, setting out several areas where it believes current rules could be overhauled.
Proposals include moving, over time, towards a single VAT rate to eliminate arguments over whether products and services are standard-rated, zero-rated or exempt.
Other suggestions focus on simplifying rules around employment status and removing abrupt “cliff edges” created by differing tax thresholds.
The ICAEW’s Tax Faculty has also been examining options for rethinking VAT and has launched a wider programme to assess shortcomings in the current system and set out what an improved model should look like.
As part of that work, the faculty has updated its Ten Tenets for a Better Tax System, reiterating that tax should be simple and certain.
The poll also found that, alongside tax changes, most ICAEW members want the government to prioritise AI and access to skilled workers.
Around three-quarters of respondents said the government should focus on providing regulatory clarity on AI, while 54% supported updating the UK’s skills framework to increase workforce participation.
