The Office of Tax Simplification has released a new report that follows on from a previous review of the Business Life Cycle published in April 2018.
The new report, “Simplifying everyday tax for smaller business”, discloses that, of the 5.7 million businesses in the UK, 99% are small owner-managed businesses. Furthermore, as many as three quarters do not engage other employees.
It is these stark figures which have led OTS to strongly recommend everyday tax be simplified for these businesses, and for more guidance to be available for new start-ups.
The recommendations in the report cover five key areas:
- Simple step-by-step guidance about the key things a business needs to do in its early days to help things run smoothly;
- Improving the operation of the PAYE system;
- Implementation of HMRC’s Agents Strategy;
- Improving the mechanics of the Corporation Tax return process;
- Ensuring that tax changes are built on an understanding of business processes.
The full report is available to read online. However, should you wish to discuss any of the key areas of the Business Life Cycle, please get in touch.