UK’s sprawling tax legislation is strangling the economy and must be cut down to size
The UK’s sprawling tax legislation is strangling the economy and urgently needs cutting down to size, say leading audit, tax and business advisory firm, Blick Rothenberg.
Sean Drury, head of tax at the firm, said: “On Legislation Day this year we had twenty-six separate policy and draft legislation announcements, four new consultations and the published responses to five consultations. Simplification seems to be on the backburner, despite the UK’s overly complex tax system making compliance and day to day financial administration harder for businesses, investors and individuals, which ultimately harms economic growth.”
He added: “Advisors are still absorbing the amount of detail that came out for comment, but the onslaught of ‘new stuff’ for advisors, taxpayers and HMRC agents to deal with continues to grow – currently the UK’s tax code is around 17,000 pages long. On Legislation Day 2025 there were fifteen policy and legislation announcements, nearly half the number announced on L Day 2026.”
Sean said: “The policy papers include the ‘niche’ such as the international student levy or VAT on drink deposit schemes. But much more significant and wider legislation, for example, implementing elements of Pillar 2 into UK legislation and the reform of the foreign permanent establishment exemption are also present.”
He added: “Although the policy intent has been set, at least professionals have been given time to comment on ensuring that the legislation achieves its intentions. Blick Rothenberg will be working through the published legislation to evaluate if it is fit for purpose.”
Sean said: “Some of the new consultations are also significant, for example, aligning the time limits of National Insurance Contributions with Income Tax. Anything which makes the collection of Income Tax and National Insurance simpler for businesses and individuals is worth supporting, but this consultation seems to be further recognition that National Insurance’s purpose has changed from its original intent and it is firmly being established as a ‘Tax’.”
He added: “Blick Rothenberg will be focused on our response to ensure it achieves the policy objective of simplification, first raised by the Office for Tax Simplification (OTS) in 2016.”