Mark McLaughlin's New Year wish for a simpler tax system in the UK: destined for disappointment?
As we start the new year, many people's thoughts turn to their hopes and wishes for 2012. On the tax front, my New Year's wish has been the same for a number of years, and I make no apologies for repeating it this year - a simpler, more transparent tax system.
However, that wish seems more distant than ever. The draft Finance Bill 2012 clauses and explanatory notes published on 6 December 2011 ran to a staggering 1,107 pages, and the new legislation will add to the ever-expanding volumes, surely making the UK tax regime one of the most complicated in the world.
HMRC issued a discussion document 'Modernising the Administration of the Personal Tax System: Tax Transparency for Individuals' on 14 November 2011. The purpose of this document is broadly to seek feedback and ideas for how the administration of the tax system could be improved to achieve better understanding and to make it easier for taxpayers to deal with.
The whole exercise seems to me rather like rearranging the deck chairs on the Titanic, as it fails to address the fundamental cause of complexity in the UK tax system - the legislation itself. However, any improvement is better than no improvement, so one should perhaps be grateful for small mercies.
The closing date for comments on the discussion document is 24 February 2012, so there is time to have your say. It can be accessed via HMRC's website: Modernising the Administration of the Personal Tax System
Best wishes for 2012,
Mark McLaughlin
Managing Editor
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