Recent news has been awash with what the chancellor may reveal in his next Budget, and the most debated topic revolves around tax.The Guardian has revealed that Osborne may be looking to raise the level at which people start paying the higher rate of tax after scrapping plans for a raid on pensions tax relief. It has also been reported that Osborne is “examining a quicker increase in the personal allowance”, which is due to rise to £10,800 from April and £11,000 in 2017. However, Chas Roy-Chowdhury, ACCA’s head of taxation, explained that while the chancellor has set in motion several mechanisms to improve the UK economy, he needs to break from his usual delivery of the Budget. “The chancellor should not risk progress by chasing headlines in Thursday’s papers,” Roy-Chowdhury said. He added: “We already have a review of business taxes and business rates underway, as well as a review of the entire tax system by the OTS (Office of Tax Simplification). In past budgets he’s circumnavigated such work by announcing surprise changes before the OTS has had chance to complete their review and report back. “During his time at No.11 Downing Street he’s made many pledges to make the tax system simpler, now he has the chance to make good on those promises. Let the reviews happen and take time to study the recommendations.” Read more tax-related stories:
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