Budget 2014 predictions: Baker Tilly

Baker Tilly recently conducted a survey on what people really want to see in the Chancellor's Budget on 19 March. Rebecca Reading looks at the results and puts forward her predictions.

The taxation of multinationals is still at the top of the agenda with 35% of respondents rating this as what they would most like to see.

Reducing employers' NI to create more employment opportunities was also a popular choice, followed by cracking down on off-shore tax evaders.

Reinstating the 50p rate of income tax for high earners received little support with just 6% of the vote.

“The 50% tax band was a flagship tax policy for Labour back in 2010, and was thought to have popular appeal. Looking back on the three years it was in force, there is some evidence that it did not raise that much in terms of additional tax revenues,” Reading said.

“Perhaps people believe that high earners use tax planning to avoid paying the additional tax or cynically see the 50% rate as more of a political vote winner rather than robust fiscal policy.”

On corporation tax, she said having already announced the future 20% rate from 1 April 2015, an increase here is “equally unlikely” and would send the wrong message to business.

“We are already starting to see increased interest from multinational businesses attracted to the UK by the low tax rate, indicating that this policy is proving successful, and contradicting the popular assumption that big business avoids UK tax.”

Comments

it is unfortunate    1 thanks

justsotax | | Permalink

that there is so much misguided reporting suggesting that those paying the 45% tax rate don't use tax planning....and only started when the 50% rate was introduced. 

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