The Association of Chartered Certified Accountants (ACCA) has issued a statement saying that the Government’s tinkering with the tax system and failure to support the Office of Tax Simplification (OTS) has made tax more complicated for individuals and businesses say Harris & Co accountants Northampton, the specialist small business accountants #accountantsnorthampton
The ACCA cited as an example, the changes to the taxation of partnerships, where the Government has implemented changes while the OTS is in the process of reviewing partnerships more generally, which it says ‘seems completely at odds with the reason for establishing [the OTS] in the first place’.
It said the withdrawal of personal allowance for those on incomes of over £100,000 has resulted in a marginal rate of 60 per cent on income between £100,000 and £120,000, when the rate drops back to 40 per cent before going back up to 45 per cent at £150,000. In addition, the implementation and interaction of individual elements in the taxation of contractors and the employment industry supply chain, such as the onshore intermediaries rules, have imposed additional burdens and complication.
Other examples cited include consistent rate changes to Annual Investment Allowances which counteract the benefit; transferable allowance for married partners which has resulted in potentially infinite marginal tax rates; and the UK’s unique fiscal year where the tax year is run six days in to a month instead of using the calendar year or at least aligning to the end of a month.
The ACCA said the Government has not given the OTS enough of the support it needs or the time to do its work since its founding.