UK needs stability in the tax system

The UK needs stability in the tax system so that someone setting up a small business "knows what tax regime they are going to need for the next five years", said one industry professional.

This week the government announced the creation of a new Office of Tax Simplification, comprised of a board of tax experts who will focus on tax reliefs and small business tax simplification, publishing their findings ahead of the next Budget.

Commenting on the announcement, Andrew Hubbard, immediate past president of the Chartered Institute of Taxation, said: "At the small business level there has been a lot of quite complex rules that have changed year-on-year and it has become a very unstable system as there are lots of anomalies in the system."

He added that small firms use up a lot of their time to sort out these legal forms and they can be a burden on them.

Mr Hubbard also explained that the tax advantages for self-employed people include not having to be under PAYE, having more opportunities to claim expenses and only paying tax twice a year.

Posted by Morag Lyall

Published on: July 22, 2010

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