This was recently launched and there are genuine high hopes of this initiative serving to create a simpler tax system.
The Chancellor has initially asked the OTS to take forward two reviews, which cover tax reliefs and small business tax simplification (including IR35), with details as follows:
- OTS has been commissioned to review a list of all reliefs, allowances and exemptions within the taxes and duties administered by HMRC and identify those reliefs that should be repealed or simplified to support the Government’s objective for a simpler tax system. The Government is particularly interested in identifying reliefs that are largely historic, not frequently used, create distortions in the tax system or are complex for business or HMRC to administer. OTS has been asked to produce an interim report by late Autumn 2010 and a final report with recommendations to the Chancellor ahead of Budget 2011.
- OTS will provide an initial report to the Chancellor by Budget 2011 that identifies areas of the tax system that cause the most day-to-day complexity and uncertainty for small businesses and recommends priority areas for simplification. Once the Government has considered the initial report the OTS will be asked to produce specific recommendations on tax simplification for small businesses. As part of the initial report, OTS will also explore alternative legislative approaches to IR35.
We will make sure that we take full advantage on your behalf of any tax simplification proposals coming from these 2 reviews. If you have any suggestions on tax simplification (polite ones naturally!) please send them to us and we can pass them on to the OTS at the appropriate time as a complete submission from this firm by reference to real life issues identified by us and our clients.