OTS asks for ideas to simplify VAT
The office’s brief, specifically to “identify simplification opportunities” to VAT, will raise eyebrows among contractors’ tax advisers, as well as contractors themselves.
Only last month, the government introduced the term ‘limited cost’ trader into the FRS; a move that will “inevitably complicate” a scheme that was only set up to simplify VAT.
Alongside general VAT admin, “special accounting schemes” are within the terms of the OTS’s review, as is almost any other VAT issue that PSCs who get in touch wish to bring up.
“We are interested in hearing from businesses, advisers and others who deal with VAT about the issues they find most complex and any ideas they might have to simplify the system,” the office said.
And while it won’t ignore Brexit -- it says it will “actively” bear the context in mind when drawing up simplification opportunities, safer ground for contractors’ comments include the VAT registration threshold, the VAT penalty regime, VAT under Making Tax Digital and the VAT appeals process.
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