New office to simplify tax

A new tax body was unveiled yesterday by chancellor George Osborne, responsible for simplifying the tax system for businesses and individuals.

The Office of Tax Simplification (OTS) will identify areas where complexities in the system can be reduced and will publish its findings for the chancellor to consider ahead of the budget.  The focus will be on tax reliefs and small business tax simplification, in order to make the UK the most competitive country in the G20.

Osborne said: “Two years ago I promised to create the Office of Tax Simplification.  Today, we’re delivering on that promise.  With its independent, expert advice it will be a permanent force for a simpler tax system.  Simpler, more competitive taxes will help us show the world that Britain is open for business.”

The launch of the new Office has been welcomed by the Professional Contractors Group (PCG), who has expressed satisfaction that the government has made good on this commitment.

Managing director of the PCG, John Brazier, said: “We are delighted that the government has now set up this vital office and that they have already set out the terms of reference for a Small Business Tax Simplification Review.

“We will be working to ensure that all freelancers and small businesses will be able to operate within a fairer and more transparent way.”

Commenting on the new tax office, David Frost, director general of the British Chambers of Commerce (BCC), said: “The creation of the OTS is a necessary and long overdue response to the relentless chop and change of tax law. The business community, and the economy, will benefit from the recently announced lower rates of tax, and now from the drive towards a simpler system.
“The government needs to continue with measures that foster entrepreneurship in order to secure a sustainable economic recovery.”

© Crimson Business Ltd. 2010