Raft of Budget measures increases complexity
The Association of Taxation Technicians (ATT) has warned that today’s Budget adds further complexity to an already stretched tax system, after the Chancellor unveiled a series of targeted tax changes.
Announcements made by Rachel Reeves included:
- The creation of new rates of income tax for income from property, savings and dividends.
- The introduction of pay per mile pricing for electric cars
- Over 60 other changes to existing tax regimes
The Association warns that while, individually, these may achieve policy aims, together they add up to an increase in the overall complexity of the tax system.
It is calling for the Government to take a holistic view of future tax changes, in order to simplify the overall tax system.
Jon Stride, chair of the ATT’s Technical Steering Group, said:
“Today’s announcements underline the growing challenge faced by taxpayers and advisers alike. Each of these measures may have its justifications when viewed in isolation, but the cumulative effect is a system that becomes harder to navigate year after year.
“Individuals and small businesses do not have unlimited time or resources to keep pace with changing rules. Greater simplification should be a priority for the Government, to ensure the system remains accessible, workable and fair, especially for individuals and small businesses who most struggle to comply.”
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