Simplify Tax System: OTS publishes series of recommendations
The Office of Tax Simplification (OTS) has outlined a range of measures designed to help simplify the UK tax system.
In the OTS’s latest evaluation and stock take note, which considers its work on corporation tax and the taxation of self-employed people, the Office highlighted taxes it feels can be reviewed by the government in order to reduce the administrative burden on businesses.
In regard to personal service companies, the OTS suggests renewed consideration of enabling a small personal service style business to operate through a UK limited company while being treated as transparent for tax. The stated aim would be to provide a fully recognisable form of limited company, removing it from corporation tax and introducing the ‘relative ease of a self-employment style tax calculation’.
The OTS also reaffirmed its support for HMRC doing more to enhance the taxpayer Personal Tax Account (PTA), including integrating it with the Business Tax Account (BTA). It believes this will ‘provide an end-to-end tax reporting and payment service and facilitate the simplification of tax administration for self-employed people’.
Additionally, the OTS stated it would welcome the development of a statutory definition of employment for tax purposes.
For more information on the OTS’s recommendations please click here.
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