A report has recently been published by the Office of Tax Simplification (OTS) calling for the government to carry out ‘urgent work’ to simplify the business tax system for UK firms.
The OTS report examined how the tax system affects businesses at each of the key stages of their development, from start-up to succession planning, and highlighted the complexity entrepreneurs face when seeking to establish or grow a business. Many are finding the UK tax system too complicated, and therefore a real barrier to fulfilling their potential.
Within the report, the tax reliefs and charges that apply to new and growing businesses are examined on how well they achieve their objectives. The report looked into:
Outlining the differences and interactions of each, the report concluded that reliefs and charges would ‘benefit from an overhaul to reduce complexity’.
The OTS report highlights that this overhaul would have a significant impact on making the benefits ‘more accessible’ to businesses.
Speaking on behalf of the OTS, Paul Morton, Tax Director, said: ‘This paper takes a significant first step towards meeting the pressing need to undertake a detailed review of the tax system as it operates across the business lifecycle.
‘It is aimed at helping the businesses that are the lifeblood of the UK economy to maximise their opportunities and to make the system clear and simple to understand and use.’
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Contact us today for a free and confidential conversation about your business on 0800 0141 130.