Tax simplification around the corner

The recent formation of the Office for Tax Simplification and Tax Professionals Forum, with the subsequent issue of nine tax-related discussion documents, suggests that the current Government are serious about reducing the existing 11,000 pages of tax code that make up the British Tax system. 

The aim of the Office for Tax Simplification is to look at ways to simplify the current tax system, ease administration and reduce uncertainty for small businesses.

It is widely accepted that a simpler tax system would be good for personal taxpayers and businesses alike.  But don’t hold your breath - the simplification process could take years or even decades.  The last initiative to simplify the Tax System started in 1996 and was stopped 13 years later, even though some areas of tax had not been touched.  Simplification, as with any tax change, can result in winners and losers.  It is therefore worth keeping abreast of the planned changes as they are announced.