Views wanted on tax simplification ideas for small business

Small businesses and advisers are being invited to give their views on tax simplification ideas put forward for discussion today by the Office of Tax Simplification (OTS).

In the latest development in the ongoing review of small business taxation, the OTS has set out a number of options in two consultation papers, focusing on disincorporation for small companies, and a simpler income tax for the smallest businesses.

The consultations, which run until 7 October 2011, set out a number of options from clerical changes to more fundamental reform. Based on responses to the consultation exercise, which will include a series of meetings and workshops in the autumn, the OTS will prepare a final report with recommendations for the Chancellor. The aim will be to ease some of the tax and administrative burdens faced by small businesses.

John Whiting, Tax Director of the Office of Tax Simplification said:

“We have been told in no uncertain terms that tax administration can be a problem for small businesses. So we want to stimulate debate and allow those in business, and their advisers, to give us their views on the various possible ways forward.

“Would a cash basis be a better way of taxing the smallest businesses? How about flat rate expense allowances? What of the more radical alternatives some other countries use – could any of them work here? Do we need a disincorporation relief? Whether you agree with these ideas or not, we are keen to hear your views.”

The options put forward in the two consultation documents – found here – are not firm proposals but are intended to get people thinking and generate a debate to help the OTS refine its ideas ahead of the final recommendations to be made to the Treasury ahead of Budget 2012.

Responses to the document can be emailed to the OTS inbox. Alternatively, interested parties can contribute by attending one of the meetings and workshops that will be taking place around the country in September and October. The OTS would welcome offers to host or participate in these events from agents, businesses and representative bodies. Further information on the locations and dates of the roadshow events will appear on the OTS website in due course.


Leave a Reply

Your email address will not be published. Required fields are marked *