Confusing tax policy holds back business
A report by the Office of Tax Simplification (OTS) calls for tax policy for small business owners to be overhauled to tackle widespread confusion among entrepreneurs. The OTS is critical of the “complex patchwork” that owners of private companies face, and said that the system needed to be simplified to make tax reliefs “more accessible and to better enable businesses to fulfil their potential”. Issues highlighted include the structure of tax reliefs for investors in SMEs, such as the enterprise investment scheme. Paul Morton, tax director of the OTS, said that EIS was complicated for individual investors to negotiate and that simplification would help companies and their backers. He added that there should be a goal to make tax for small business owners closer to the experience of regular employees via PAYE.
Source: The Times (18/04/2018)