The Treasury has asked the Office of Tax Simplification (OTS) to look at how the system of tax administration for smaller businesses works. Previous OTS reports suggested that tax administration is a source of uncertainty and complexity for many smaller firms.
The new review will examine ways of reducing the administrative burdens of the current system and of simplifying the ways in which HMRC and small businesses interact with each other.
This will involve examining small businesses’ experience of tax administration and their contact with HMRC at key stages of the annual tax cycle. The review will also investigate the tax administration processes involved in starting and growing a new business.
John Whiting, tax director for the OTS, said: “It’s clear that many small businesses are struggling under the administrative burdens imposed by the UK tax system. We plan to set up surveys to really home in on what steps cause the most difficulties – and how the system can be improved, making it easier for businesses to get things right with the minimum of fuss.”
There are a number of reforms affecting the tax system at the moment. Don’t forget that we can make sure that you both comply with the rules and pay no more tax than you should be paying.