The Office of Tax Simplification (OTS) has published its recommendations following a simplification review of small company taxation.
The OTS’s report on simplifying taxation for small companies contains a mix of long range structural change ideas and simpler short term administrative improvements.
After an executive review, summarising the recommendations, the report includes detailed analysis on legal issues and alternative structures; lessons from other countries; the structure of company taxation; administrative aspects; and the life cycle of a small company. The annexes include a summary of the wide range of responses to the OTS’s survey.
The OTS plans to do more work on key structural change ideas, including a ‘look-through’ basis of taxation for some small companies and whether a new trading vehicle (a ‘sole enterprise with protected assets’ or SEPA) would be useful. The OTS looks forward to receiving input on these ideas and can be reached at firstname.lastname@example.org. A range of other recommendations for simplifying the taxation of small companies and streamlining the administration aspects are included in the report and the OTS expects a response from the government in due course.