Britain will miss a “fantastic opportunity” to simplify tax systems for businesses after Brexit, according to an accountancy.

Andy Dawbarn, a partner at Ashford-based Wilkins Kennedy, said companies hoping to see a reduction in red tape may be left disappointed.

However, he expects a change to the way VAT is applied and expects the nation to adopt a model similar to Norway, which still enjoys some benefits of the single market and “freedom in terms of movement of goods”.

Mr Dawbarn said: “Brexit actually represents a fantastic opportunity for the UK Government to radically simplify many aspects of the tax.

“It could also be used to reform contentious areas such as reliefs to charitable bodies and so on, all of which are currently constrained by the EU legislative framework.

“Brexit actually represents a fantastic opportunity for the UK Government to radically simplify many aspects of the tax..." - Andy Dawburn, Wilkins Kennedy

“However, the reality is much more likely to be that any new regime will be further complications for businesses – with additional administration and more ‘red tape’ – than that which they currently enjoy.”

Outside the EU, any changes to VAT law would no longer be bound by the European Court of Justice.

Mr Dawbarn said: “Without the constraints of the VAT Directive, the UK Government may have greater freedom to apply its own interpretations of the rules which could lead to changes in how HMRC applies VAT.

“In my view, it seems most likely that we will end up with a model similar to Norway which, whilst able to set its own agenda in terms of its VAT regime, does enjoy some benefits in terms of the single market and freedom in terms of movement of goods.

“It is possible that this could be tackled in the course of withdrawal negotiations with a view to the UK acceding to European Free Trade Association and the European Economic Area as soon as it had left the EU, but the move would not be automatic.”