An Exceptionally Competitive Tax System in the United Kingdom - Essay Example

The United Kingdom has an exceptionally competitive tax system in the world that seems attractive to investors globally. The UK tax system is competitive in the G7 and the G20 since their standard corporation tax is 26% and applies to both resident and non-resident companies. Furthermore, other credible tax reliefs may reduce corporations’ tax burdens such as research and development relief. Several players make sure the completeness of the tax system in the UK such as companies, the company’s professional advisers, Her Majesty’s Revenue and Customs, or the Government. Companies are required to keep absolute and precise records of their accounting and other business transaction details that may be required in court as evidence against tax cases. Businesses are required to obtain adequate information and competent advice concerning tax assessment. Companies are then required to file their tax returns properly on specific dates to ensure tax compliance to avoid heavy penalties and interests because of non-compliance. Companies must ensure that they enroll for corporation tax online services and choose a suitable software to use. Both resident and nonresident companies liable for corporation tax must ensure filing an online company tax return.

 Companies must ensure that all the deductions are deducted from their taxable amounts before submitting their returns and that all the tax reliefs, losses, and allowances are accounted for. In addition, companies must ensure that all the statutory deductions such as PAYE are accounted for before submitting their returns. All the penalties and interests have to be incorporated in the tax returns’ computation by the companies. Companies may as well challenge tax assessments in court or tribunals. The companies may assign a tax specialist to deal with their tax matters. Companies should contact the corporation tax office in case there is any legal reason for not filling the corporation tax returns such as winding-up orders. A company must authorize in writing to use an accountant on their behalf. The role of professionals in the tax system is very important in the tax system since companies and businesses depend on them for advice. Tax experts may advise the company on the information concerning corporation tax compliance and VAT, tax efficiency, and mitigation. The tax professionals, having been employed by the companies, are required to register their companies on the corporation tax online services whether the companies are residents or non-residents. Tax experts compute all the taxable amounts of the corporation on behalf of the business. The tax experts will compute individual accounts for the subsidiary companies and consolidated accounts for the parent companies that do business in the UK.

Moreover, the experts may compute their client's overseas companies that were incorporated in the UK. Tax experts, while computing their client’s taxable income, must ensure that all the allowances, deductions, and reliefs are accounted for. Tax professionals may also advise the companies on the important documents to be kept by the companies for tax purposes. A tax expert may be liable if their clients fail to file their returns on time or under-calculated taxable income based on the expert’s advice. The government plays an extremely pivotal role in addressing tax issues. The tax authority gathers tax from corporations and persons. The government must ensure that it taxes all the taxable individuals and companies without bias. Government forms policies to ensure unbiased sharing of the tax weight. The administration must make the certain implementation of all the policies made. Government should put heavy penalties and interests on companies that break the tax laws by setting examples for other businesses hence discouraging tax evasion. In addition, the government shall set reliefs and allowable items hence minimizing the tax burden among the companies. The government must ensure a very high level of tax compliance by the companies and even conduct an in-depth analysis of the companies that are suspected to be non-compliant. The governments need to receive information from any source such as the public or media concerning companies that do not tax compliant. The tax authority shall then act on the information received by proving its credibility.

 The government has the authority of carrying out investigations regarding any company that does not abide by tax laws. The tax authorities may sue companies that do not act as per the tax requirements. Furthermore, tax authorities should organize refunds for companies that overpaid their returns. Government should make sure compliance with the VAT and customs laws. The government should utilize the returns collected from the tax to carry out development projects in the UK. The tax administrator can seize the property of a firm that does not meet the required tax policies. Governments must refrain from soliciting gifts for actions and non-actions and be dedicated to a great deal of honesty and integrity to maintain confidence among taxpayers.