Tax specialists are divided over how the coalition government’s tax policies compare to those of its predecessor, a recent Tax Journal survey suggests.
Almost half of the 158 responses so far received suggested that the coalition has performed better than the previous administration in terms of tax policies for ‘big business’:
72 (46%) said the coalition has done better than the Labour government so far;
64 (41%) said the two regimes have performed ‘about the same’; and
20 (13%) said the coalition has done less well than Labour.
But the responses suggest that the coalition has done less well for SMEs:
46 (29%) said the coalition has done better than Labour;
74 (47%) said ‘about the same’; and
37 (24%) said the coalition has done ‘worse’ than Labour.
Just over a third of respondents favoured the coalition’s approach to the making of tax policy, while a quarter said the coalition’s approach was ‘worse’ than that of its predecessor.
Extracts from some of the 34 comments received are set out below.
‘With limited options available to them, the coalition are making a creditable attempt to refocus the economy towards exports, private sector growth and real job creation for the benefit of all our society.’
‘They have started off with good intentions. Lets us hope that they can follow through on their initial plans and good ideas don not turn out to be empty rhetoric.’
‘Appalling lack of understanding as always. Changes to the capital allowances regime are very unfavourable to SMEs. Abysmal service levels from HMRC still not addressed by government.’
‘Disappointed that there is not more help for SME and less for large businesses.’
‘I helped vote out Gordon Brown because I loathed his oppressive tax regime … The move towards VAT is a good thing provided they can phase out direct taxes and reduce complexity, which has been made a lot worse by Gordon. Not much has happened yet, and as usual middle England hasn't come off relatively better …’
‘It is important that large corporate taxpayers pay a fair amount of tax.’
‘Apart from the unfortunate raid on North Sea oil in the 2011 Budget … this government has shown real intent to simplify existing tax law and to consult on new legislation. If it can maintain its initial momentum and implement proposals to improve parliamentary scrutiny of tax legislation, it could help create for the future a tax regime that is fit for purpose.’ Gavin McEwen, Honorary Professor of Taxation, University of Aberdeen
‘Setting up the Office of Tax Simplification was a good move, but the proof of the pudding will be in the eating.’
‘The rhetoric has been very positive with consultation etc. but the change to the North Sea could be viewed as having undermined any view that the UK had a stable tax regime.’
‘If the tax simplification recommendations (in particular the merging of tax and NI) are accepted and put in place then I would consider that a significant improvement has been made. However at the moment it is very much the same as before with little change in tax policy and absolutely no improvement in our dealings with HMRC.’
‘Not enough is being done to tackle businesses operating in the black economy: these businesses are unfair competition to businesses that operate legitimately. Why doesn't anything happen to all the money laundering reports from tax advisers showing tax evasion. Feedback in the profession shows a pitiful level of enquiries in response to the reports submitted.’
‘Higher income tax for all those on middle to high and very high incomes should be imposed, and cuts to services and benefits should be reined back.’ A member of the Child Poverty Action Group
‘There have been a lot of promises so far but little help for business – especially small and developing business – in taxation.’
‘The 50% personal income tax rate is a huge mistake and the Chancellor has lost billions of foreign investment as executives will send executives and new operations to other countries. George Osborne needed the courage to admit this was a mistake, rather than standing by so-called principles that will cost us dear!’
‘This government is deliberately creating an unlevel playing field which favours large companies over small ones. This is an appalling development in UK taxation. The people of the UK as a whole have a reason to be angry with the government over its taxation policy with regard to large companies.’ Richard Murphy, Director, Tax Research LLP
‘The tax policies put in place by the coalition are little different from those announced by the previous government but not enacted due to time running out.’
Tax specialists are divided over how the coalition government’s tax policies compare to those of its predecessor, a recent Tax Journal survey suggests.
Almost half of the 158 responses so far received suggested that the coalition has performed better than the previous administration in terms of tax policies for ‘big business’:
72 (46%) said the coalition has done better than the Labour government so far;
64 (41%) said the two regimes have performed ‘about the same’; and
20 (13%) said the coalition has done less well than Labour.
But the responses suggest that the coalition has done less well for SMEs:
46 (29%) said the coalition has done better than Labour;
74 (47%) said ‘about the same’; and
37 (24%) said the coalition has done ‘worse’ than Labour.
Just over a third of respondents favoured the coalition’s approach to the making of tax policy, while a quarter said the coalition’s approach was ‘worse’ than that of its predecessor.
Extracts from some of the 34 comments received are set out below.
‘With limited options available to them, the coalition are making a creditable attempt to refocus the economy towards exports, private sector growth and real job creation for the benefit of all our society.’
‘They have started off with good intentions. Lets us hope that they can follow through on their initial plans and good ideas don not turn out to be empty rhetoric.’
‘Appalling lack of understanding as always. Changes to the capital allowances regime are very unfavourable to SMEs. Abysmal service levels from HMRC still not addressed by government.’
‘Disappointed that there is not more help for SME and less for large businesses.’
‘I helped vote out Gordon Brown because I loathed his oppressive tax regime … The move towards VAT is a good thing provided they can phase out direct taxes and reduce complexity, which has been made a lot worse by Gordon. Not much has happened yet, and as usual middle England hasn't come off relatively better …’
‘It is important that large corporate taxpayers pay a fair amount of tax.’
‘Apart from the unfortunate raid on North Sea oil in the 2011 Budget … this government has shown real intent to simplify existing tax law and to consult on new legislation. If it can maintain its initial momentum and implement proposals to improve parliamentary scrutiny of tax legislation, it could help create for the future a tax regime that is fit for purpose.’ Gavin McEwen, Honorary Professor of Taxation, University of Aberdeen
‘Setting up the Office of Tax Simplification was a good move, but the proof of the pudding will be in the eating.’
‘The rhetoric has been very positive with consultation etc. but the change to the North Sea could be viewed as having undermined any view that the UK had a stable tax regime.’
‘If the tax simplification recommendations (in particular the merging of tax and NI) are accepted and put in place then I would consider that a significant improvement has been made. However at the moment it is very much the same as before with little change in tax policy and absolutely no improvement in our dealings with HMRC.’
‘Not enough is being done to tackle businesses operating in the black economy: these businesses are unfair competition to businesses that operate legitimately. Why doesn't anything happen to all the money laundering reports from tax advisers showing tax evasion. Feedback in the profession shows a pitiful level of enquiries in response to the reports submitted.’
‘Higher income tax for all those on middle to high and very high incomes should be imposed, and cuts to services and benefits should be reined back.’ A member of the Child Poverty Action Group
‘There have been a lot of promises so far but little help for business – especially small and developing business – in taxation.’
‘The 50% personal income tax rate is a huge mistake and the Chancellor has lost billions of foreign investment as executives will send executives and new operations to other countries. George Osborne needed the courage to admit this was a mistake, rather than standing by so-called principles that will cost us dear!’
‘This government is deliberately creating an unlevel playing field which favours large companies over small ones. This is an appalling development in UK taxation. The people of the UK as a whole have a reason to be angry with the government over its taxation policy with regard to large companies.’ Richard Murphy, Director, Tax Research LLP
‘The tax policies put in place by the coalition are little different from those announced by the previous government but not enacted due to time running out.’
