DISINCORPORATED SMALL BUSINESSES could benefit from a tax relief under proposals by the Office of Tax Simplification.
The OTS published its consultation document on the taxation of small businesses today. It features a number of options in two documents on disincorporation for small companies and a simpler income tax system.
The consultation period runs until 7 October and the OTS hopes to prepare its final report for the 2012 Budget.
John Whiting (pictured), tax director of the Office of Tax Simplification said: “We have been told in no uncertain terms that tax administration can be a problem for small businesses. So we want to stimulate debate and allow those in business, and their advisors, to give us their views on the various possible ways forward.
“Would a cash basis be a better way of taxing the smallest businesses? How about flat-rate expense allowances? What of the more radical alternatives some other countries use – could any of them work here? Do we need a disincorporation relief? Whether you agree with these ideas or not, we are keen to hear your views.”
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