A pre-budget report from Chancellor Alistair Darling has indicated that he aims to simplify the business tax system. More than 20 measures have been tabled, including improvements to self-assessment, payroll and stamp duty land tax.
The Chartered Institute of Taxation has welcomed the move but is this really likely to simplify what anyone with any sense would agree is an over-complicated system.
John Cullinane of The Chartered Institute of Taxation adds a cautionary note to his comments when he said "it will take sustained effort, for a long time, to simplify it [the business tax system]. More consultation prior to major changes would help build support for this."
Without proper consultation - and that does seem to be the case here - there is the danger that rather than simplifying things, Darling will add another level of complexity to an already creaking system.
While I, for one, would definitely like to see a straightforward, easy to understand and easy to operate business tax system, I suspect that this is not likely to be the outcome here.
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