OTS publish guidance surrounding the simplification of tax
11 October 2019
The Office of Tax Simplification (OTS) have provided information relating to landmarks in life that may affect an individual’s tax circumstances, and offer advice to the government on how to simplify the highly confusing policies and tax implications currently surrounding these areas. The document is a follow up to the advice on simplifying tax for smaller businesses, which was released by the OTS back in May 2019.
The 92-page document addresses a variety of scenarios that most people experience over the course of their lifetimes, but which are classed as ‘key life events’, and aims to simplify the tax treatment that occurs as a result of these situations. The key life events that attract coverage in the guidance relate to having children, entering work, changing jobs, saving for or drawing a pension, and supporting others who are less able to take care of their own affairs.
The article offers 15 clear and concise points on how the government should proceed and relates them back to the life event areas. All the suggestions would ideally uncomplicate some complex areas that baffle the general public, who aren’t professionals in tax, or indeed, its application. Some key areas addressed include the High-Income Child Benefit Charge, the introduction of the study of PAYE within education systems and the clarity of explanatory notes that are provided to workers alongside their tax code notification letters.
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