Business News

Tax Set To Be Made Simpler

Chancellor George Osborne has launched a new Office for Tax Simplification (OTS), with the task of identifying areas where complexities in the tax system for businesses and individuals can be reduced.

Launching the OTS on 20 July, Mr Osborne said: “Simpler, more competitive taxes will help us show the world that Britain is open for business.”

Drawing on external expertise from the tax and legal professions, the OTS will carry out two initial reviews over the coming year, focusing on tax reliefs and small business tax simplification, including IR35.

It will publish its initial findings on their work on reliefs in the late autumn and on small business tax by the 2011 Budget.

Over the past decade, the tax code doubled to more than 11,000 pages. Chair of the OTS, the Right Honourable Michael Jack, said: “Entrepreneurship should never be stifled because of an overly complex tax system.

“Simplification in a complex world is a real challenge but it’s one that has to be addressed if the tax system is not to hinder the economy’s ability to grow.”

LINKS: Office of Tax Simplification