The Treasury has published its discussion document called Small companies, the self-employed and the tax system.
It aims to open up a discussion on strategic issues relating to the taxation of small companies and the self-employed. Issues raised in the post-PBR discussion with interested parties will inform Government thinking on the strategic development of the personal and corporation tax regimes as they relate to small businesses.
The Government has invited comments from interested parties 'to inform its thinking on the strategic development of the personal and corporation tax regimes as they relate to small businesses'.
In particular, the Government would welcome thoughts on the following issues arising from this paper:
- how the government can improve targeting of incentives for growth and enterprise – for instance by adjusting the balance of tax and non-tax incentives;
- whether the Government should consider segmenting owner-managers of companies from other company owners for tax purposes;
- how the trade offs between the different tax treatments for different types of business can be managed,including between meeting the objectives of minimising the economic costs of raising tax revenue,and of minimising compliance and administrative costs;and
- whether and to what extent businesses would value the benefits of certainty and simplicity over specific incentive structures.
Following the Pre Budget Report and the publication of the discussion paper industry experts have commented:
“This sounds very ominous. Owner-managers of companies are already differentiated from other company owners for tax purposes by IR35 and the application of Section 660, so it’s a little perplexing as to what the Government is getting at”- Matthew Brown, Managing Director, Giant group
The Chancellor has offered nothing immediate. There is no respite from IR35 or S.660A
Simon Sweetman
“The Chancellor has offered nothing immediate: there is no respite from IR35 or S.660A” - Simon Sweetman
“little comfort for small businesses among 'more Brown rhetoric” - Keith Preece, Qdos Consulting
Sources: Shout99