UK Tax System: A Need for Simplification
Clients deserve a fairer deal than the current UK tax tangle, which has been promised to be simplified for decades.
The UK's tax system is still complex, with advisers struggling to champion fairness for clients due to unfair rules. The system is filled with contradictions, such as "Spend more! But make sure you have enough to pay for future needs, such as care, because the tax take isn’t enough to support the national care system."
But not too much or you’ll get a tax penalty. Oh, and there are tax incentives - and disincentives - when it comes to investing. But make sure you don’t invest in the wrong stuff.
Financial services professionals are tired of having to navigate this complex system, feeling like "translators of chaos" instead of empowering savers. The system discourages savers, wrapping everything from Isas to inheritance in red tape and contradictory incentives.
Author's summary: UK tax system needs simplification to ensure fairness for clients.