OTS recommendations to simplify tax for small companies
The OTS have published their recommendations for simplifying tax for small companies:
- Aligning filing and payment dates e.g. VAT and PAYE, and annual returns and corporation tax.
- HMRC providing extra support at weekends and evenings when more small company owners deal with their tax affairs.
- Stopping duplication of information to various government departments who instead should share the information.
- Looking at the feasibility of having advance clearances for VAT.
- OTS propose to look further at a ‘sole enterprise protected assets’ structure which could give a sole trader the key aspects of the liability protection they currently incorporate to secure. Also, they propose further work to investigate a “look through” approach whereby instead of paying corporation tax, a company’s shareholders would pay income tax on the profits directly. This could offer simplification for the small companies that distribute all their profits. First Freelance, working alongside the FCSA, are continuing to engage with OTS and will keep you informed of developments.
Published on: 05 April 2016 - By: First Freelance