Tax Simplification ...could it be that simple?

An interim report looking at small business taxation has been published (March 2011) by the Office of Tax Simplification (OTS).   Merging Income Tax and National Insurance, the future of IR35, HMRC’s procedures and a simpler regime for the smallest businesses are all addressed in the initial recommendations.   The report analyses a range of elements of small business taxation and identifies problems and suggests ways forward.

The OTS concluded that major structural changes would be needed to the UK tax system if genuine and long lasting simplification is to be achieved and this would involve a lengthy process.

So, whilst we welcome the review and the consultation carried out and performed by the OTS, it remains to be seen what the final outcome will be.   Obviously, the proposals form part of a bigger consultation, with the final OTS report several months away.   We will therefore keep an eye out for further detail on the proposals as they develop.