CIOT backs government consultations on tax reform

The government's recently published discussion papers on tax have been backed by the Chartered Institute of Taxation (CIOT), who say that the tax system must be simplified.

The Financial Times Adviser reports that Vincent Oratore, president of the CIOT has welcomed the review of several proposed changes to the tax system.

Many - though not all - of the measures proposed in the nine consultation papers launched by the Treasury this week in advance of the parliamentary break will affect payroll service providers, who generally deal with tax contributions for employees. These include a proposed reform of the PAYE system, amendments to the provisions for national minimum wage workers regarding expenses, and the likely lowering of pension contribution limits.

The CIOT has particularly welcomed the proposed changes to pensions tax relief. Speaking in the FT Adviser, Mr Oratore said: "We all understand that pensions tax relief is going to be curtailed but that there has to be a simpler way than the complex and costly system previously legislated for."

"A cut in the annual contribution limit would be a simpler and more pragmatic way forward."

Mr Oratore said that the consultation showed that the government was willing to listen to the concerns and suggestions of external professionals, adding that the CIOT shared the governments "objective of simplifying the system and reducing burdens on business and individual taxpayers."