UK tax expert David Redfern has welcomed the findings of the Institute of Public Policy Review (IPRR) review into the taxation system in the UK and its calls to abolish tax bands and combine income tax with National Insurance, describing the review as “long overdue” and an opportunity to simplify and modernise the UK taxation system. Redfern, a tax preparation specialist and founder of DSR Tax Refunds, hailed the recommendations as a huge leap towards a fully progressive taxation system and urged the government to seriously consider adopting them.
The IPPR report, which was published on Monday, called for a number of changes to the current taxation system including the combining of income tax and National Insurance contributions as well as the scrapping of income tax bands, to be replaced by a formula-based tax calculation based upon each taxpayer’s actual income. The report suggested that not only would this simplify a complex system of taxation, with different forms of income currently being subject to different rates of tax, but that it would also raise significantly more in terms of annual tax revenue, with an estimated increase of between £6bn and £16bn per tax year. Redfern stated that “as our economy becomes increasingly complex, our taxation system follows suit meaning that most people who lack our expertise in taxes are increasingly confused about how the tax system works. The suggestion that this new system would be both simpler as well as increasing tax revenue without burdening the taxpayer seems to make it an ideal solution”.
Commenting on the IPPR report’s findings that the new system would also be fairer to low and medium earners, potentially increasing their net income by up to £1,200 per year, Redfern noted that he welcomed the proposal to spread the tax burden more equitably, stating that “I have long been campaigning for a fairer system of taxation on behalf of the average taxpayer, who isn’t equipped with the expertise and advice to help them lessen their tax burden like those who have access to more resources. That this new system not only increases the UK tax revenue whilst also helping people keep hold of more of their hard-earned cash will ensure that our taxation system is fit for purpose for a modern economy”. The IPPR summarises the new proposals as “more efficient and progressive, and in addition could be used to raise revenues in a way that is fairer and more politically acceptable than the current system”.
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DSR Tax Refunds are a firm of tax rebate specialists serving clients nationwide. DSR Tax Refunds are tax preparation experts who specialise in identifying potential allowable expenses for tax rebates for clients. Their specialist team can help employed and self-employed subcontractors with all relevant paperwork to ensure their claim is handled in an accurate and efficient manner.
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