FCSA set to meet with the Office of Tax Simplification (OTS)
The Office of Tax Simplification (OTS) had issued two consultations that impact on freelancers operating through their own companies. You can read the consultation documents here:
Lookthrough taxation is a way of taxing small companies and their owners that allocates the profits (including all income and gains) of the company to the proprietors. For tax purposes, the company is ignored (so no corporation tax) and instead the owners are taxed directly on the company’s income under income tax and CGT rules. The model is not complete and the paper discusses many issues where input is needed.
Sole Enterprise with Protected Assets (SEPA)
OTS are exploring a Sole Enterprise with Protected Assets (SEPA) model, which would make provision for protecting one or more of the assets of a self-employed individual. It would be a way of providing a degree of personal asset protection to business owners, potentially eliminating the need to incorporate solely for limited liability.
Managing Director of First Freelance, Mark Beal-Preston, will be representing the FCSA along with other FCSA Members, in face to face discussions with John Whiting CBE, Tax Director at OTS and his team. The meeting is set to take place at 10 am on Thursday 8 September in London.
Updates to follow in due course.
Published on: 19 August 2016 - By: First Freelance