TaxCorporate TaxSME tax reform “will benefit tax advisers”

SME tax reform "will benefit tax advisers"

An overhaul of the tax system for small businesses would cost tax advisers work, but would ultimately benefit them, says John Whiting

A SIMPLIFICATION OF the tax system for small businesses could result in less work for tax advisers but would be in their best interests overall, the head of the review team has said.

The Office of Tax Simplification’s report into small businesses said that SMEs are employing tax advisers to deal with unnecessary complexities in the system. It suggested a simpler system for businesses with turnovers of £20,000 or less. John Whiting, head of the team, told Accountancy Age that the VAT flat rate initiative has shown that it is possible to introduce simpler schemes for smaller businesses.

“For small businesses, let’s think of a simpler system that suits them, they will have to keep records, but minimal ones, it is dead easy tax system to understand and dead easy for HMRC to implement. That sounds appealing to me,” he said.

It would possibly mean less work for tax advisers, he added. But this will affect micro businesses, with turnover of less than £20,000, a large proportion of which do not have advisers.

“I can’t help but think that the work that would drop away would be the worst incomplete records, desperately trying to get some form of accounts from the brown paper bag of receipts.”

Related Articles

OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

5m Alia Shoaib, Reporter
Tax crackdown brings in £468m for HMRC

Corporate Tax Tax crackdown brings in £468m for HMRC

11m Accountancy Age editorial
Five key tax and business burdens the chancellor must ease in Autumn Statement

Business Regulation Five key tax and business burdens the chancellor must ease in Autumn Statement

1y Kevin Reed, Writer
HMRC reports increase in R&D tax relief uptake

Corporate Tax HMRC reports increase in R&D tax relief uptake

1y Accountancy Age, Reporters
MGI Worldwide calls for small company corporation taxes

Corporate Tax MGI Worldwide calls for small company corporation taxes

1y AccountancyAge staff
Number of winding up petitions filed by HMRC rises by 13%

Business Recovery Number of winding up petitions filed by HMRC rises by 13%

1y Richard Crump, Writer
CIoT warns on new new targeted anti-avoidance rule

Accounting Standards CIoT warns on new new targeted anti-avoidance rule

1y Richard Crump, Writer
Deloitte propels into SME market with £2.5m accounting services investment

Accounting Firms Deloitte propels into SME market with £2.5m accounting services investment

1y Fraser Simpson, Reporter