A partner at London tax advisory firm Blick Rothenberg has called on the UK to completely reform a tax system “not fit for purpose”.
According to Robert Pullen, the fall-out from the COVID-19 pandemic presents a “once in generation opportunity” for UK Chancellor Rishi Sunak to introduce widespread reform and simplification to the UK’s “out-of-date” tax system.
Mr Pullen said that dramatic reform, with tax simplification at the centre of the agenda, would ease taxpayer frustration, assist HMRC with collection and administration, as well as reduce the tax gap.
The Chancellor’s next Autumn Budget could be the most important in recent history, Mr Pullen said, as the “UK looks towards economic recovery and avoid a dangerous and costly recession. “
This, Mr Pullen argued, presents Mr Sunak with an opportunity to “overhaul the tax system and position the UK as the stand-out choice as a place for business in the international world.”
Despite successive governments and chancellors having regularly “tinkered with the UK tax code” much of this has “been driven by a political agenda, and becomes quickly outdated. This has led to confusion, frustration and ultimately uncertainty – both for the taxpayer and HMRC who have the unenviable task of trying to police the rules,” Mr Pullen said.
He explained that there are parts of the tax codes that have not been looked at since before the turn of the century and they have remained as they are, with further legislation being continuously added on top.
“This has crea...