 |
|
| CURRENT SECTION :: Money News | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
Her Majesty’s Treasury is ready to hear your views on how to simplify the UK tax system for self-employed workers and small businesses alike. Three tax reviews unveiled in the Pre-Budget Report are now taking ideas about ways the system could be made easier for taxpayers to administer. Hailed as one of the PBR’s most positive aspects for contractors, the reviews are broadly aimed at making the payment of tax fairer, simpler and more efficient. Officials want to know how to simplify, VAT rules and administration; corporation tax rules, and anti-avoidance laws, without detracting from their aim of protecting the Exchequer. Respondents to the VAT review should note HMRC is keen to know where simplification is likely to be of most significance to all VAT registered businesses, according to the ICAEW. The leading accountancy body says HMRC wants feedback on the frequency with which businesses submit VAT returns, with a view to getting more owners to submit them yearly. HMRC also wants views on the procedure for electing to waive exemption on land and no-residential buildings, and for calculating/adjusting VAT recovery under the Capital Goods Scheme. There are other aspects of VAT administration HMRC is willing to explore, including how to identify and prioritise complex VAT areas for simplification both in the UK and in the EU. Respondents to the corporation tax review should note officials want to explore how to simplify associated rules for the small companies’ corporation tax rate. Under the review, The Treasury and HMRC believe that there may be scope to simplify corporation tax self assessment filing and payment arrangements for groups. The bodies are further inviting views on group aspects of corporation tax on chargeable gains, and exploring whether the administrative burden of transfer pricing rules could be lightened. Respondents to the review of anti-avoidance legislation should note both Treasury and Revenue & Customs’ officials believe the laws work best when they are clear and well-targeted. Respondents running their own businesses are asked to highlight areas of anti-avoidance legislation that currently imposes the most significant burden. In particular, the Institute of Chartered Accountants in England and Wales (ICAEW) have criticised rules in the Finance Act 2007 which affect capital gains and losses on share transactions and between spouses. In a veiled allusion to the Arctic Systems case, the ICAEW reflected: “These rules are not well targeted and much has been left to HMRC interpretation and guidance.” In its review, officials said they are willing to check whether all anti-avoidance rules should be in primary legislation or use a more flexible combination of primary and secondary legislation. A letter, published jointly by HM Treasury and HMRC, invites active contribution to these three reviews, at meetings, by email or online. The online questionnaires for each review are fairly brief and provide a general overview, but respondents can leave additional comments. The ICAEW’s Tax Faculty will be responding to each review, but the group said “it is clear that a huge volume of responses from business sent direct to government through the online questionnaires would also be helpful.” Nov 8, 2007 Email this article Printer friendly page Previous Page
|
|
  
|
||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |