Plea to simplify tax

Simplified tax system could boost UK finances

Experts have suggested that the Government could provide a long-term boost to Britain's public finances by simplifying the tax regime. Labour, which has vowed not to raise the rates of income tax, National Insurance or VAT, has said it could raise about £6bn by narrowing the difference between what HMRC actually collects and what it is owed. Experts say ministers could achieve this by simplifying the tax system, with such a move reducing the risk of businesses and individuals mistakenly underpaying tax. Helen Miller, deputy director of the Institute for Fiscal Studies, argues: "Simplification in and of itself shouldn't be the goal," saying: "We have to have some complexity in order to achieve other aims such as redistribution. But right now we have too much complexity in order to achieve those aims."