The Chancellor's Promise to Improve the UK Tax System
Ahead of Budget 2024 ...
Posted by Roger Eddowes on 30/09/2024 @ 8:00AM
The UK's tax system is a complex and ever-changing landscape, with numerous laws, regulations, and policies in place. In recent years, there has been increasing scrutiny on the tax system, particularly on the tax gap ...
The UK tax system is set to become more modern, efficient, and fair for all taxpayers!
In order to address this issue, Chancellor Rachel Reeves has committed to reform, modernise, and invest in the tax system, to close the tax gap and improve the overall efficiency and effectiveness of HMRC.
"One of the key measures announced by the Chancellor is the introduction of e-invoicing!"
This electronic invoicing system is intended to promote its wider use across businesses and government departments. The government believes that e-invoicing will not only reduce errors in tax returns, but also improve the speed and accuracy of tax collection. This move towards a more digital tax system is in line with the government's overall strategy to modernise and streamline the tax system.
In addition, the government has appointed the Exchequer Secretary to the Treasury, James Murray MP, as the new chair of HMRC's board. The purpose of this board is to provide accountability on HMRC's performance, delivery, strategy, capability, and risk. This move is expected to bring fresh perspectives and ideas to the table, ensuring that HMRC is constantly striving towards improvement and efficiency.
Furthermore, the government has committed to publishing a digital transformation roadmap in the spring next year. This roadmap will outline HMRC's vision to be a digital-first organisation, to improve the user experience for taxpayers and make it easier for them to comply with their tax obligations.
This move towards a more digital tax system is expected to bring numerous benefits, including increased efficiency, reduced costs, and improved accuracy!
Another significant aspect of the government's plans is the recruitment of 5,000 more HMRC staff over five years. This is in line with the government's commitment to invest in HMRC and improve its capabilities.
In fact, some new staff are expected to join HMRC's training programme as early as November, with offer letters already sent to 650 potential recruits. This increase in staff numbers is expected to improve HMRC's ability to tackle tax evasion and avoidance, as well as provide better support to taxpayers.
The government has also reiterated its commitment to deliver on its manifesto promises at the Budget on the 30th of October. These promises include not increasing the rates of income tax, national insurance, or VAT, capping the main rate of corporation tax at 25% for this Parliament, abolishing the so-called 'non-dom' regime, charging VAT on private school fees, and reforming business rates. These measures are intended to create a fairer and more transparent tax system.
"They also hope it will generate additional revenue for the Treasury!"
The Chancellor's plans to reform, modernise, and invest in the UK tax system are a step in the right direction towards closing the tax gap and improving the efficiency and effectiveness of HMRC. The introduction of e-invoicing, the appointment of a new chair for HMRC's board, the digital transformation roadmap, and the recruitment of more staff are all crucial elements in achieving this goal.
With these measures in place, the UK tax system is set to become more modern, efficient, and fair for all taxpayers.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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