The government should take a more strategic approach to tax policy, consulting earlier and giving greater thought to the design of the tax system, says Nichola Ross Martin, President of the Chartered Institute of Taxation (CIOT).
In her inaugural speech as CIOT President, Ross Martin said that making a success of MTD will need HMRC and tax professionals to continue to work closely together. She also promised to continue to press for improvements to HMRC service levels over the year ahead.
The CIOT President also encouraged the government to consider introducing a statutory employment test. In addition, she urged Institute members and employers to feed into a review of the Chartered Tax Adviser (CTA) qualification.
Ms Ross Martin said:
‘While there is plenty of argument about rates and burdens in parliament, there is very little about reform and design.
‘Take employment taxes. The PAYE system is the government’s main breadwinner. Successive governments have tweaked the rates and thresholds for national insurance but paid rather less attention to the fundamental issues as to how tax policy might adapt to cope with the changing world of work.
To pose these questions is not to argue for an ‘everything everywhere all at once’ approach to tax. But it is to point out that there is more to tax policy than rates and thresholds. Strategy is crucial.’
Reference: CIOT website
