The TaxPayers’ Alliance has published a report written by Dominic Raab MP (Con, Esher and Walton) recommending a series of changes to simplify the UK tax code.

The report suggests that the current code is too complex, facilitating tax avoidance on one hand and frustrating individuals and SMEs on the other. It sets out a series of proposals to simplify the tax system and make it fairer and more competitive. The report recommends:

• Giving the Office of Tax Simplification the mandate to simplify the tax code, involving it in the design of all future UK tax legislation
• Replacing Corporation Tax with a tax on distributed profits
• Simplifying payroll taxes by aligning the threshold for making National Inusrance Contributions with that for paying income tax
• Easing the regulatory burden on small businesses by making the threshold for quarterly accounting match the VAT registration threshold
• Placing clear financial penalties on HMRC to compensate taxpayers who suffer from the arbitrary use of its powers

While this is not an official Government report, CTG will be keeping an eye on anything that comes of it, particularly regarding the replacement of Corporation Tax (for which there is currently a charitable exemption).