The Office of Tax Simplification (OTS) published its recommendations to simplify the tax system for small businesses on 28 February 2012. The proposals aim to address problems faced by the UK’s smallest businesses and help them deal more easily with their tax obligations.
The recommendations cover three key areas:
Tax administration: the OTS proposes a range of practical changes to raise awareness of the help that is available for small businesses, improve communication and the relationship between HMRC and the small business community, and ways to provide businesses with more certainty about their tax affairs.
Simplified taxation for the smallest businesses: the OTS suggests that the accounting burden is simplified and that a wider range of flat-rate expenses allowances is made available, along with future consideration of a turnover tax as an alternative for the smallest businesses.
Disincorporation: the OTS proposes the introduction of a tax relief to enable companies to disincorporate without incurring significant tax cost.
The Office of Tax Simplification (OTS) published its recommendations to simplify the tax system for small businesses on 28 February 2012. The proposals aim to address problems faced by the UK’s smallest businesses and help them deal more easily with their tax obligations.
The recommendations cover three key areas:
Tax administration: the OTS proposes a range of practical changes to raise awareness of the help that is available for small businesses, improve communication and the relationship between HMRC and the small business community, and ways to provide businesses with more certainty about their tax affairs.
Simplified taxation for the smallest businesses: the OTS suggests that the accounting burden is simplified and that a wider range of flat-rate expenses allowances is made available, along with future consideration of a turnover tax as an alternative for the smallest businesses.
Disincorporation: the OTS proposes the introduction of a tax relief to enable companies to disincorporate without incurring significant tax cost.
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