A Budget all about the Next Generation pushes simplification on to their shoulders too.
The Chancellor today alluded to the complexity of the UK's tax system, and the need for modernising codes to make the system fit for the 21st century. At 20,000 pages, the UK's tax code remains one of the most complex globally and at times, totally out of kilter with what a modern, vibrant economy requires.
Jonathan Riley, Head of Tax at Grant Thornton UK LLP, commented: “Complexity has serious commercial implications for business. We know, for instance, that more than half (54%) of businesses say the current tax system slows down commercial decisions – with mid-sized businesses the most affected by this. It’s therefore disappointing that the Chancellor did not use today’s opportunity to push for real and material change to simplify the system.
"Although the chancellor announced measures aimed at benefitting business – new exemptions for micro businesses, a reduction in headline Corporate Tax rate, and dedicated help for mid-sized businesses by HMRC, a lot of these measures will require more rules and regulations. Radical simplification and greater transparency and understanding would increase productivity and compliance – a win-win for the economy and society more wholly.
"Over the coming months, Grant Thornton will be stimulating and contributing to a review of the current tax systems – ultimately helping encourage an overhaul of Britain's tax system. As part of our Vibrant Economy inquiries, we will establish the 'Rebooting the Business Environment Inquiry', which will bring together the private and public sector to examine the efficiency and effectiveness of the business tax regime.”