Calls for next government to invest in tax system

Tax advisers are calling for the next government to invest in the tax system to help boost economic growth.

According to the Chartered Institute of Taxation (CIOT), any party serious about improving economic growth and productivity should be making the administration of the tax system a key part of its General Election platform.

CIOT President, Charlotte Barbour, is writing to the tax spokespeople for the main political parties, identifying seven ‘pressing issues’ that the Institute believes should be a priority for the next government.

These issues include:

• Resourcing HMRC to provide the level of service taxpayers need.
• Reviewing tax digitalisation to focus on the needs of taxpayers.
• Committing to meaningful simplification of the tax system.
• Getting research and development tax credits working properly.
• Creating effective but proportionate action to tackle rogue tax agents.
• Providing greater transparency and accountability over policy costings.
• Adhering to sound tax policy-making principles.

Commenting on this, Charlotte Barbour, said, “Tax is always central to political debate and party manifestos during an election campaign. But too often this is limited to arguments about which groups should pay a bit more or a bit less.

“Just as important is having a tax system that works effectively. Onerous requirements, excessive complexity, an inability to access clear guidance and prompt payments – all these hinder the ability of business to do business and to contribute to the economic growth and increased productivity that the UK needs to prosper.

“A properly funded and efficient HMRC is vital to the success of the UK economy. But current HMRC service levels are far from where they should be. Just this month the National Audit Office revealed that callers to HMRC telephone helplines spent nearly 800 years waiting on hold in 2022-23 – more than twice as long as in 2019-20.

“Done well, digitalising tax administration can bring benefits to all involved. But too often it seems to be an exercise merely in outsourcing work from HMRC to taxpayers and their agents.

“A straightforward, easy to navigate tax system would free up business owners and managers to focus on growing their business, rather than spending their days overcoming bureaucratic hurdles put in their path by the state.

“Better tax policy-making can provide taxpayers with greater certainty and stability, increasing public support for, and compliance with, the tax system.

“In all these areas, improvements to how the tax system operates can make a significant contribution to UK economic growth. We hope politicians of all parties will put such measures at the heart of their elections plans and programmes for government.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.