Ahead of today’s Autumn Statement, business leaders say they would be willing to see their tax bills rise in return for a less complex and tortured tax system, according to research by BDO
In a poll of more than 500 businesses across the UK, it found that 57% of business owners, finance directors and CEOs would support tax simplification even if it meant marginal tax rises for their business.
Half of businesses would like to see an alignment of national insurance and income tax to help reduce the administrative burden and bring employment taxes up to date to meet the increasingly fragmented work patterns of many people, with self employment, use of personal service companies and the gig economy. The review of NICs and income tax, and potential alignment possibilities, has been an important part of the work of the Office of Tax Simplification (OTS).
David Brookes, tax partner at BDO, said: ‘From a business owner’s perspective, the sheer volume and complexity of tax legislation is a major obstacle to growth.
'With little room for tax changes or new reliefs amidst Brexit uncertainty, the Chancellor must address simplification in today’s speech to help businesses succeed in the future.’
Businesses also want fairness in the tax system to feature in Philip Hammond’s first Autumn Statement as Chancellor.
Almost 45% of respondents believe HMRC should follow through on all the OECD proposals to tackle tax avoidance by multinational companies, while an additional 25% say HMRC should be awarded more resources to use its existing powers effectively.
