Call for thorough review of small business tax
MPs have tabled a motion urging the Treasury to make the most of the year that has been set aside to consult on the question of small business tax and income shifting.
An Early Day Motion, the second on the issue, said that the Treasury should carry out “a thorough review of more appropriate means of providing smaller enterprises with a suitable legal entity designed for use in the 21st century, and not the 19th century as the limited company was, that will simultaneously reduce the taxation, accounting and regulatory burdens on smaller enterprises, so freeing them to generate wealth and employment in the UK economy”.
The Chartered Institute of Taxation (CIOT) welcomed the move.
The CIOT has argued that the structure of small business taxation needs fundamental reform if small enterprises are to plan their tax affairs with any degree of certainty.
Rob Ellerby, the CIOT’s president, said: “The MPs who tabled this motion are right to say that by extending the process for another year, the Government has given itself a great opportunity to think through the issue more fundamentally with a view to coming to a better answer.”
