Reply to post: Re: The UK Tax system is no longer fit for purpose. gears up for IR35 private sector crackdown – say industry folk

Anonymous Coward
Anonymous Coward

Re: The UK Tax system is no longer fit for purpose.

Completely agree.

The politicos love to fiddle with the tax system, either to conceal the fact that they're raising taxes, or with the more laudable aim of trying to steer economic behaviour. The result over years is a comically convoluted tax code. It's well past time to ask whether the benefit, in terms of steering the economy, is worth the cost, in terms of collection/enforcement effort and accountants' fees.

For starters we could get rid of NI and roll it into income tax. And tax dividends the same as other income. At a stroke that would end this IR35 debate.

What about VAT? How much money is spent by companies on dealing with VAT, and by the revenue on collection and tackling VAT fraud? Get rid of it. Tax income instead.

Inheritance tax? Treat inheritances as income and forget about taxing the estate itself.

You could debate whether "sin taxes" should be retained - booze, fags, fuel duty and so on. They're relatively cheap to administer and collect, so does the social policy benefit justify that cost? Quite possibly, yes. But that should be the question we're asking about every tax or allowance or exemption.

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