Small Business Tax Review
The Office of Tax Simplification was asked to provide an initial report to the Chancellor by Budget 2011 that identifies areas of the tax system that cause the most day-to-day complexity and uncertainty for small businesses and recommends priority areas for simplification. As part of the initial report, the OTS was also asked to explore alternative approaches to IR35 (the intermediaries legislation).
On 10 March 2011, the OTS published the interim report of the review of small business taxation. This report highlighted several priority areas for reforming the taxation of small businesses. We expect to receive a formal response from the Chancellor in due course. Once the Government has considered the initial report, we expect to receive a formal response from the Chancellor. Following this, OTS will produce specific recommendations on tax simplification for small businesses as part of the final report.
Budget 2011 announced that the Government will take forward OTS recommendations to integrate the operation of income tax and National Insurance Contributions and to improve the way IR35 is administered.
For the final report on small business taxation, the Government has asked the OTS to look at improving HMRC administration for small businesses. Details on the other strands to be taken forward in the final report will be published shortly.
On 9 May 2011, the Government asked the Office of Tax Simplification to carry out a review of the tax administration of small businesses, identifying changes that can be made to simplify and improve the process.
If you want to contribute to the review, please email us at: email@example.com
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