News
Small Business Tax Simplification
02 - 08 - 2010
Small business tax simplification will mean the end of IR35 in its current form. The review by the Office of Tax Simplification should be published in time for the Budget in 2011.
The Government has now created the Office of Tax Simplification. A board of tax experts will be responsible for leading the work of this new office. The aim of the Office of Tax Simplification is to identify areas where complexities in the tax system for both business and individuals can be reduced. Initially it will focus on:-
- small business tax simplification including IR35
- tax reliefs for individuals with particular reference to historic or anomalous items.
The terms of reference for the small business review include the following:
The Government will be interested in issues in relation to the structure of the tax system and employment status tests more generally.
It is difficult to see how this review is going to make much progress unless or until the Government grasps the nettle of a clear choice between employment and self employment. Defining this dividing line is going to be essential if the proposed review is going to be radical and effective. Anything else will simply be yet another rearrangement of the deck chairs.
