HM Revenue and Customs

Business Groups Welcome Office of Tax Simplification

A new tax body set up by the Government to unravel the “spaghetti bowl” of complex tax laws has been broadly welcomed by business groups. The Office of Tax Simplification (OTS) task force, made up of a board of senior tax experts, is expected to deliver two reviews before the Budget next year. The first will look at all 400 tax reliefs, allowances and exemptions to see how they can be streamlined, while the second will focus on ways to simplify the tax system for small businesses, including finding a simpler alternative to IR35 legislation. IR35 was brought in ten years ago to tax “disguised employment” among contractors and freelancers. According to the British Chambers of Commerce (BCC), the establishment of the OTS was a “necessary and long overdue response... »

Firms allowed to delay Tax Payments

HM Revenue & Customs (HMRC) has launched a business payment support service which allows struggling firms to defer their business tax bills. SMEs finding it difficult to pay income tax, VAT, corporation tax and National Insurance contributions can get in contact with HMRC to arrange an affordable payment timetable, allowing them to make payments over a longer period. Where a deferment has been made, HMRC will not apply any late payment surcharges, although interest will be charged on outstanding amounts. Because HMRC rates of interest are generally lower than rates offered by many high–street banks, tax experts are predicting that there will be a rush to defer payment from firms suffering cashflow problems. According to HMRC, £3 billion in tax could be deferred over the nex... »