- ICAEW urges the government to consult on a single, lower rate of VAT with minimal exemptions to simplify the system and boost tax revenue.
- The current complex VAT system discourages business growth and creates administrative burdens.
- Broadening the VAT base could generate an extra £30bn–£80bn annually, depending on the rate and coverage.
- ICAEW recommends mechanisms to protect low-income households and suggests phasing in changes to avoid economic disruption.
- The reforms aim to stabilize public finances, support the poorest households, and reduce the need for other tax increases.
Source: icaew.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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