There are two different needs – making the rules simpler, fairer and easier to understand – and transforming the service into one that sees taxpayers as valued clients and treating them as such, rather than behaving as an uncaring bureaucratic leviathan. These two linked but separate goals could be achieved by two task forces working closely together, with remits to produce results within a limited time-frame of perhaps 18 months. Ideas include reforming the ISA rules. ISAs are an inverted benefit – they save no tax for small investors but save huge amounts of tax for millionaires. Reform Inheritance Tax, which jumps from 0% to 40% in a clunky way, encouraging avoidance. Means-test the state pension to exclude millionaires. But reward the larger taxpayers by recognising their important contribution to the state, along the lines in which the Blood Donor service rewards acknowledges loyal blood donors. Big taxpayers should feel appreciated by the organisation to which they pay so much of their money. Completely reorganise the literature to be more welcoming and easier to understand. Overall, the aim is to revolutionise the relationship between HMRC (which probably needs to be re-named) and its millions of clients. The reward is a better experience for taxpayers and a better return for the state.
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