‘With the UK now facing the certainty of a hung parliament, the tax consequences are anything but clear. The next days and weeks may see a new leader for the Conservative party, a coalition government or even another election.
For the sake of all taxpayers, it's important that the party or parties forming the next government should quickly get a grip on taxes. There are three pressing challenges.
‘The first is simplification. The UK needs a simpler tax system which is driven by evidence-based policies and underpinned by a desire to achieve an integrated, stable and sensible whole.
‘The second is restoring faith in the UK tax system. The current perception is that some companies and individuals blatantly evade tax, or use tax rules to avoid tax unfairly. The new Government must create a simpler, open and demonstrably fairer tax system in order to restore trust.
‘Finally, there is now an opportunity to design a post-Brexit tax system which meets our future needs as a nation. The successful implementation of the Making Tax Digital initiative is just one element of this ambition. There are also wider, more fundamental questions over the future of business taxes, how much tax the wealthiest in society should pay and what the UK form of VAT should look like. Finding the right solutions to these key areas will be crucial to the UK’s future economic prospects.
‘The question is, will the new government, in whatever form that takes, rise to the challenge?’