Income Tax was introduced back in 1799 to pay for equipment and weapons in preparation for the Napoleonic Wars. Whilst the rules have changed over time and more taxes have been introduced, the general principles of taxation have remained the same.

Is it right in today’s modern society and economy that we have a tax system that is not only riddled with archaic legislation, but is also disjointed and severely lacks transparency?

It is difficult enough for business owners to comply with the red tape surrounding employment law and health and safety, just to name a couple, without taxation adding to the burden. As we move towards the 2020’s, the tax system needs to change to make it simpler, more transparent and easier for businesses and the owners to understand. If this is achieved, it is my belief that this will make UK businesses more competitive in the worldwide market and will make the UK more attractive to overseas businesses.

A future chancellor should consider the following: –

• Income Tax and National Insurance for low earners. This group should be taxed less and spending more.
• VAT to be simplified, with fewer Zero Rate exemptions
• Business rates be simplified with an extension to the Small Business Relief
• Activities that cause environmental harm to be taxed more heavily, as motorists currently are

Individual issues cannot be solved in isolation and therefore, in my view, a serious overhaul of the UK tax system is long overdue and should be high on the agenda for the government in power after the election.