Treasury Select Committee

Treasury Select Committee Inquiry: Tax after Coronavirus.

MAHM’s contribution to this inquiry presented evidence to address the question:

‘Which areas of the tax system are most in need of reform?’

We focused specifically on income tax. It highlights the pressing need for a fairer family taxation system. Our system of independent taxation is not fit for purpose for taxing families; it causes unfairness, injustice and even harm.

MAHM’s Summary of the current tax landscape:

• UK tax system is almost alone in developed world in taking no account of the family.

• Single Income Families (where one parent cares for children)) are unfairly taxed and miss out on child benefit at a lower household income (£50k) than a dual income household (£100k).

• Tax traps reduce the incentive to work or earn more, damaging not just GDP but career opportunities and self-worth too.

• Mothers are needed to plug the income gap, separating mother and child before either is ready.

Thank you to Georgia Colville and Anne Fennell for their work in drawing together the evdience for this submission.