The Office of Tax Simplification (OTS) has published its final report and recommendations on ways to make the calculation of corporation tax simpler for companies of all sizes. The report’s main conclusion is that tax rules should follow accounting rules wherever possible, without the need for adjustments, for all but the very largest companies. A key recommendation for the government is to develop a corporation tax roadmap.
The main recommendations the OTS thinks will make the greatest difference are:
The report makes a further 25 recommendations that the OTS thinks could also make an important contribution. For smaller companies, these include:
Among the additional recommendations for larger and more complex companies are:
The OTS acknowledges that its proposals for small companies, some of which have the potential to help with the introduction of MTD, should be considered separately from the larger company proposals. See http://bit.ly/2tlH2YT.
Angela Knight, chair of the OTS board, remarked on the ‘clamour from companies of all sizes and types’ for ‘a clear and coherent roadmap for corporation tax simplification to give certainty for all companies’.
Paul Morton, OTS tax director, commented that a simpler approach involving the closer alignment of tax with a company’s accounts would be ‘particularly attractive for smaller incorporated businesses, which represent the overwhelming majority of companies’. He added that the report ‘sets the scene for further work on the costs and benefits of moving to a depreciation-based approach to giving relief for capital expenditure which could offer a significant simplification for companies of all sizes’.
The Office of Tax Simplification (OTS) has published its final report and recommendations on ways to make the calculation of corporation tax simpler for companies of all sizes. The report’s main conclusion is that tax rules should follow accounting rules wherever possible, without the need for adjustments, for all but the very largest companies. A key recommendation for the government is to develop a corporation tax roadmap.
The main recommendations the OTS thinks will make the greatest difference are:
The report makes a further 25 recommendations that the OTS thinks could also make an important contribution. For smaller companies, these include:
Among the additional recommendations for larger and more complex companies are:
The OTS acknowledges that its proposals for small companies, some of which have the potential to help with the introduction of MTD, should be considered separately from the larger company proposals. See http://bit.ly/2tlH2YT.
Angela Knight, chair of the OTS board, remarked on the ‘clamour from companies of all sizes and types’ for ‘a clear and coherent roadmap for corporation tax simplification to give certainty for all companies’.
Paul Morton, OTS tax director, commented that a simpler approach involving the closer alignment of tax with a company’s accounts would be ‘particularly attractive for smaller incorporated businesses, which represent the overwhelming majority of companies’. He added that the report ‘sets the scene for further work on the costs and benefits of moving to a depreciation-based approach to giving relief for capital expenditure which could offer a significant simplification for companies of all sizes’.