The poll of ICAEW members, conducted in the past week, found that nine in 10 (90%) would support tax simplification as a government priority. Simplifying the tax system would drive growth and facilitate an increase in business confidence, the Institute explained.

ICAEW said the finding reflects longstanding concerns across business and accountancy about the complexity and instability of the UK's tax regime, which many members identify as a significant barrier to investment and growth.

Routes to tax simplification could include a single rate of VAT, which would remove costly disputes about whether items are zero-rated or exempt; measures to streamline employment status; removal of cliff edges at different tax bands; and a government commitment to a tax simplification roadmap and strategy.

Alan Vallance, ICAEW Chief Executive, said:

“Our members have told us overwhelmingly that they want the government to commit to legislation to simplify the tax system, which is recognised to be one of the most complicated in the world.

“A simpler tax system would mean fewer disputes about whether marshmallows are food or confectionery, would reduce the personal tax cliff edges that reduce productivity and would make it easier for companies to have clarity on employment status when they take on staff. These complicated disputes take time and attention away from the pressing matter of growing their businesses.

“We also need to futureproof the tax base in the face of technological change. Robots don’t pay income tax, so how will the Treasury safeguard revenue as AI transforms the economy?

“ICAEW members tell us that doing business is too complicated, too expensive, and too uncertain, and we hope the government will commit to tax simplification to drive economic growth and boost business confidence.”

Other findings

Additionally, almost three quarters of ICAEW members polled (72%) said they would support the government providing regulatory clarity on AI.

Just over half of those surveyed (54%) said they would support the government updating the skills framework to increase workforce participation.

When asked about modernising the corporate reporting framework, 47% said they would support this.

ICAEW’s Business Confidence Monitor for Q1 2026 found that having been on course to move into positive territory for the first time since Q4 2024, average sentiment fell from +2.8 on the eve of the Iran conflict to an overall reading of -1.1 by the end of the 10-week survey period.

Though confidence improved from the reading of -11.1 in Q4 2025, the impact of the Iran war means sentiment has now been in negative territory for five successive quarters, the longest period in more than six years.

Negative confidence readings typically coincide with difficult periods for business, such as the inflation shock that followed Russia’s invasion of Ukraine.

ENDS

Notes to editors:

1. 431 ICAEW Chartered Accountants responded to an online poll between Friday 24 and Wednesday 29 April.