The Office of Tax Simplification comes to town......well to Leeds actually!

Rachael Donnelly a member of our tax team attended a discussion forum session held in Leeds, with key members of the team formed by the current Government to look at simplifying the current tax system.

The grandly titled Office of Tax Simplification started its work by reviewing all current tax reliefs and considering if these are still relevant.  A number of changes were recommended, which included simplifying  some of the relief’s for capital expenditure, entrepreneurs relief and the enterprise investment scheme and abolishing other less common relief’s such as land remediation relief, business premises renovation allowances and flat conversion allowances.

The next stage of their work is to consider the simplification of tax for smaller businesses.  An interim report has highlighted a number of areas where the administration of the tax system could be improved to benefit smaller businesses and they were keen to get our thoughts and comments on this as a region.

The topical areas discussed, included:

• The frequency of tax changes

• PAYE / NIC issues including merging the two

• Tax relief for capital expenditure, capital allowances or depreciation

• VAT – boundary issues and international aspects

• Possibility of a simplified system for ‘nano’ businesses

• IR35

Rachael said, it was clear that the Government appreciates the role that smaller businesses play in the British economy, and that they want to make it as easy as possible for them to comply with their tax obligations.  However it was also clear that achieving a solution that works for all parties is not going to be very easy!

Do you have any thoughts or comments on what tax changes would help your business, if you have then please email them to tax@revellward.co.uk.