{"id":49726,"date":"2014-11-05T10:20:32","date_gmt":"2014-11-05T10:20:32","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=eaf1727d9cda7e15a0f803b1014a42bc"},"modified":"2014-11-05T10:20:32","modified_gmt":"2014-11-05T10:20:32","slug":"speech-david-gaukes-speech-at-hmrcs-2014-autumn-stakeholder-conference","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=49726","title":{"rendered":"Speech: David Gauke’s speech at HMRC’s 2014 autumn stakeholder conference"},"content":{"rendered":"
\n

Good morning \u2013 it\u2019s a pleasure to be here today at the Autumn Stakeholder Conference.<\/p>\n

Having been an MP for nine and a half years \u2013 and having been a Minister for four and a half of those \u2013 there are some sentences which you just don\u2019t hear.<\/p>\n

\u201cI wish the Minister had spoken for longer.\u201d<\/p>\n

Or: \u201cWe need to find a way to get lawyers better represented in the Commons.\u201d<\/p>\n

Or: \u201cI really enjoy paying tax.\u201d<\/p>\n

Well, I\u2019m realistic about this. No matter what we do in government, we\u2019ll never make people enjoy paying tax. But we can make it a less painful experience.<\/p>\n

My rule of thumb is that a simpler system is a better system. <\/p>\n

So, as Tax Minister, I have made it my priority to create a modern, efficient, competitive, user-friendly tax system in the UK.<\/p>\n

Helping us reach the PM\u2019s aim of being one of the top five countries in the world in which to do business within three years.<\/p>\n

That means policy which is simpler and more understandable;<\/p>\n

That means a clearer framework for developing the policy in the first place;<\/p>\n

And that means a more efficient mechanism for dealing with taxpayers. <\/p>\n

So today, I\u2019d like to discuss what we\u2019ve achieved \u2026<\/p>\n

\u2026 As well as talking a little bit about next steps.<\/p>\n

Simplifying the tax system doesn\u2019t just make life easier for individuals and businesses. By making the policy easier to understand, you also increase compliance \u2013 maximising the benefit to the Exchequer. <\/p>\n

So in 2010, one of the first things we did was set up the Office for Tax Simplification (OTS<\/abbr>), under the leadership of Michael Jack and John Whiting. We set this organisation the task of providing independent advice to the Chancellor on simplifying the tax system.<\/p>\n

I\u2019d like to thank Michael and John, who I am pleased to see here this morning, and the staff of the OTS<\/abbr> for the work they have done.<\/p>\n

It\u2019s fair to say we have kept them busy. Since 2010, the OTS<\/abbr> has published reviews on tax reliefs, small business tax, pensioner taxation, employee share schemes, employee benefits and expenses, and an interim report on partnerships taxation. <\/p>\n

And their work has led to some significant reforms: <\/p>\n

We\u2019ve abolished over 40 redundant or outdated tax reliefs \u2013 a \u201cbonfire\u201d, if you want to be topical;<\/p>\n

We\u2019ve introduced the cash basis for calculating tax liabilities, benefiting up to three million small businesses; <\/p>\n

We\u2019re providing more information for pensioners on their taxable income \u2013 meaning millions of people are better informed;<\/p>\n

And just two days ago, we announced that 24 million people would be receiving their first annual tax summary, explaining how their income tax and National Insurance Contributions have been calculated for the 2013 to 2014 tax year, and how their money has been spent by the government.<\/p>\n

This is important \u2013 people should be engaged with the system and understand how it works\u2026<\/p>\n

\u2026And I should add that it\u2019s healthy for governments, too, to be reminded of their responsibility in spending taxpayers\u2019 money wisely! <\/p>\n

Overall, the OTS<\/abbr> has made over 200 recommendations \u2013 and we\u2019ve already taken forward over half of them. <\/p>\n

And there is more in the pipeline. <\/p>\n

Last December the Chancellor asked the OTS<\/abbr> to carry out a review of what the government can do to further improve the competitiveness of the UK tax administration. Next month, at Autumn Statement, we will respond to that report. <\/p>\n

Of course, tax simplification is not as easy as it sounds. When you simplify any taxes, there are winners and losers. And the difficult fiscal circumstances we had head to deal with mean that there is limited space to compensate those who lose out. <\/p>\n

But cutting red tape is one relatively painless way to make life easier. Our target is to reduce the annual cost to business of tax administration by \u00a3250 million by 2015.<\/p>\n

I am confident we can get there \u2013 but to do it, we need to work together. That means consultation with businesses, with the OTS<\/abbr>, with taxpayers and tax professionals. And I am here to listen to the industry.<\/p>\n

We continue to ask ourselves the question: what can we do to make ourselves even more competitive? So if something\u2019s not working, or could be made to work better, tell me about it.<\/p>\n

Nowhere is dialogue more important than when we are formulating a new policy. <\/p>\n

On taking office in 2010, we made a commitment to significantly improve the way tax policy is developed, communicated and legislated.<\/p>\n

This reflected a growing recognition that an effective and competitive tax system, which enjoys the confidence of taxpayers, depends not only on the content of tax policy, but also on the way in which tax law is made. <\/p>\n

We consulted with over 40 individuals and organisations about how we could improve in this area. And the feedback was consistent. We needed to be clearer as to what we were seeking to achieve; invest more time in getting the legislation right; and improve how we communicate policy changes.<\/p>\n

The outcome of this process was a new tax policy making framework, which we announced in December 2010. <\/p>\n

I am sure that you\u2019re all very familiar with the framework – but let me just briefly recap the five main elements: <\/p>\n