Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Record number of central banks plan to increase gold holdings amid global volatility

      Investors have been piling into gold for several reasons (Photo by Chris McGrath/Getty Images)

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Children as young as 14 are being targeted by unregulated gambling firms on social media

      Unfortunately, without additional context from the article or details about what the image depicts, it is challenging to g...

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Old Pulteney releases 50-year-old whisky for 200th anniversary

      Old Pulteney 50-Year-Old single malt Scotch whisky bottle with elegant packaging on display, highlighting luxury and craft...

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Thursday 16 November 2023 6:51 am  |  Updated:  Friday 17 November 2023 7:21 am

Our tax code is an unholy mess of wrinkles, loopholes and unintended consequences

By: CityAM Editorial

Add as a preferred source on Google
Former health secretary and Chancellor Jeremy Hunt said Tory-era policies on mental health needed "fundamental questions".
Former health secretary and Chancellor Jeremy Hunt said Tory-era policies on mental health needed "fundamental questions".

Fiscal drag is a boring term for a thoroughly miserable phenomenon.

New data has revealed that higher earners in the UK are set to pay nearly £2,000 in additional taxes by 2027 which has come as a result of this.

Salaries go up, take home stays the same; the state takes the increase and doesn’t dare speak its name.

Last month the Institute for Fiscal Studies warned that there would be no room for unfunded pre-election tax cuts despite the government having pushed through the colossal £52bn a year stealth raid on incomes.
Calling it a stealth tax is easy but it’s more iniquitous than that.

Our tax code is loaded up with wrinkles that disrupt the basic economic incentive of work: do better, take more home.

At the lowest level, the way benefits are taken away as people add hours makes it sometimes deeply unwise for individuals to take an extra weekend shift or earn a few quid extra with a second job.

At the highest, the bizarre exemptions and rules around so-called free childcare effectively encourage young parents to stay on salaries of £99,000 a year.

This is rather than earning £130,000, because you end up worse off as the benefit is taken away.
It’s crackers, it’s obvious, it’s there in black and white: and yet government has failed time and time again to deal with it.

Jeremy Hunt and his colleagues have been pretty clear that the forthcoming Autumn Statement will be one of tinkering rather than radicalism.

But perhaps the focus should not be on the numbers but the detail: a radical simplification of the tax code, or at least starting that, could be transformative.
It’s become a standing joke.

Or at least among some pretty odd folk on Twitter, including this newspaper’s editor – to compare and contrast the size of the UK’s tax code today with its previous iterations from years past.

But by God does it need sorting out.

Read more

London makes up more than a third of UK corporation tax receipts

London skyline with modern skyscrapers and lush green foliage in foreground on a clear day, highlighting urban nature balance

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Business

Trending Articles

  • As it happened: FTSE 100 relief rally runs out of steam as BP and Shell weigh; Oil hits three-month low

  • London Tech Week sums up everything wrong with UK tech

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

More from CityAM

  • London makes up more than a third of UK corporation tax receipts

    Economics
    London skyline with modern skyscrapers and lush green foliage in foreground on a clear day, highlighting urban nature balance
  • Labour has two visions for the economy, only one is even close to credible

    Opinion
    Keir Starmer
  • JP Morgan chief threatens to pull £3bn investment if Labour becomes ‘hostile to banks’

    Banking
    Jamie Dimon in a dark suit, serious expression, business setting, highlighting leadership in the financial industry
  • Barclays and Lloyds shares sink as political storm puts banks in tax sights

    Banking
    Barclays posted its first-quarter update on Wednesday.
  • Local authorities thwart housebuilding with ‘manifestly unfair’ council tax raid on developers

    Property
    Rachel Reeves at construction site, inspecting housebuilding progress, highlighting Labours commitment to housing developm...
  • Investors ‘reluctant’ to splash cash on UK banks amid crisis in Number 10

    Banking
    Andy Burnham addressing audience as Mayor of Greater Manchester in formal setting, wearing a suit and tie.
  • Brits aren’t spending enough – time for Splash Out to Help Out

    Opinion
    Burberry has cut its dividend after a plunge in sales.
  • Wealth managers shares fall amid Starmer political storm

    Investing
    Skyline of Canada with iconic financial district buildings, highlighting UK investments and economic growth.
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited