Welsh accountants call for full review of UK tax system

The Association of Chartered Certified Accountants (ACCA) is urging the Chancellor not to raise taxes or add further regulatory burdens in the upcoming Budget, but instead to investigate the root causes of the UK’s £59.2 billion tax gap.

The body, which represents more than 100,000 accountants in the UK, asks whether the system is “too complex to collect” and is calling for a full-scale review.

Lloyd Powell, head of ACCA Cymru/Wales, said: "Our members are clear: a cocktail of spiralling costs, economic uncertainty and red tape has stalled growth and stagnated economic confidence.

"The complexity of the UK’s tax system is holding back investment and economic growth."

ACCA believes simplifying tax rules would reduce errors, increase tax income, and reduce compliance costs.

A recent survey of its members found that 65 per cent hold a negative view of the economy, with only 4 per cent positive.

This is a sharp drop from 29 per cent in 2023.

The survey also found that 73 per cent of respondents had experienced a rise in regulatory requirements over the past 12 months.

Just 2 per cent reported a decrease.