Review of the taxation of small companies
28 July 2015
The Office of Tax Simplification (OTS) has agreed to carry out a review of the taxation of small companies. The overall aim of the project will be to develop recommendations on how to simplify the system, increase certainty and reduce administrative burdens caused by the tax system.
The review will build on the OTS’s earlier work on simplifying the system for unincorporated businesses. The OTS will provide an initial report to the Chancellor by Budget 2016 that:
- examines evidence and identifies the areas of the tax system that cause the most day-to-day complexity and uncertainty for small incorporated businesses
- recommends priority areas for simplification
- considers the impact of any simplification in these areas on other business sectors, particularly small unincorporated businesses.
The OTS may also publish interim reports or calls for evidence during the review.
Detailed terms of reference for the review are available.
The Policy Team will monitor any interim publications and consult members where appropriate.
We were very pleased to see that within the detail of the Summer Budget 2015 document the government are to establish the OTS on a permanent basis with an expanded role and capacity. The new, expanded OTS will be put on a statutory footing in Finance Bill 2016.