Aiming for alignment – Taxation Magazine
Simplifying the tax system is a long-held ambition, but the concept seems to disappear every year in the stack of new tax legislation.
However, the Office of Tax Simplification has some proposals on both the alignment of tax and national insurance, and potentially significant changes to micro-company taxation.
Head of Business Tax Rob Durrant-Walker summarises the proposals in Taxation magazine.
Taxation magazine feature:
Notwithstanding the volume of legislation that the Treasury continues to churn out, as Finance Bill 2016 puts the Office of Tax Simplification (OTS) on a statutory footing there is clear impetus for the body’s work in scoping profound changes to the tax system.
In March, the OTS released two significant, thorough, yet very readable reports recommending changes to align tax and National Insurance, and changes to micro company taxation – including a hybrid limited liability sole trader. The two reports could have a noticeable impact on the landscape for business and advisers over the next few years, and it should not be forgotten that other changes may be dove-tailing with those as well.
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