IFS slams 5.91 plans

Link: Tories to latch onto SME tax clampdown

The influential body has brought issue against controversial paragraph 5.91 from the pre-Budget report, saying it would be a ‘simpler solution’ to remove the tax free incentive for companies with less than £10,000 of profits.

‘Frequent changes to the tax system, particularly if made without prior consultation, do not lead to a stable environment for businesses making long-term investments,’ the Daily Telegraph reports the IFS saying.

Should the chancellor remove the two-year old incentive, however, it would similarly outrage small business owners who were urged to incorporate in order to take advantage of the zero-rate. Incorporated businesses are usually far simpler for the government to deal with.

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