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Unless I am mistaken
The only 'simplification' has been the collection class 2 NIC's via self assessment: a magnificent achievement after err.....6 years.
Weekend and evening support from HMRC
How realistic is weekend and evening support from HMRC, given the cuts in staff/budgets? They barely provide support during office hours as it is.
NO. Just NO.
There are many reasons client choose to be a limited company, one of them being the easy ability to retain funds within the business when times are good or when the business needs the funds.
The proposals would mean clients paying 40% or more on money they don't want to take out the business. At that point, there is no reason not to just close the company down and save all the costs involved and become an LLP or just a sole trader.
This just looks like another back door stealth tax, which I thought Gordon Brown was good at but Osborne has raised to another level entirely with his attacks on interest payments, etc.
OTS = Gravy Train
After 6 years (according to memyself) the best idea they can come up with is to request evening and weekend support. I've got news for the OTS. The phone will get answered at present during these times although the waiting times will still be over 30 minutes because, guess what, less staff are employed at these times.
If taxpayers wish to operate with limited liability with the attendant advantages they'll just have to fork out for an accountant who should be able to prepare accounts using accruals accounting.
I lost any faith I might have had in the OTS when they sidestepped giving a proper recommendation on IR35.
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In defence of the OTS, most of their proposals sensible proposals over the past 6 years have been ignored.
The "look through" system however sounds naive. They would hit all the normal IR35 issues about whether something is or is not a 'proper' limited company or if it is 'disguised employment'
The problem is not structure, but the fact different structures are taxed in different ways. By aligning the taxes for self employed/employment/corporate you get rid of the problem.
Cash accounting might be the only way quarterly reporting will work, but the results are essentially garbage by dropping the basic "matching" principle.
And finally: since when can you not call HMRC on a saturday? They do 8am to 4pm on the SA helpline which is the main thing an unrepresented tax payer would be calling. I think the VAT one is shut, but given all they do is read out something at random which may or may not be relevant is hardly any loss.
Let's get back to the Imputation System
The Imputation System was devised after much worthy discussion in the early 1970s. Chancellors since then have ignored (or simply do not understand) the original concepts - that it is the individual who pays tax - companies pay tax in advance for those individuals who own the companies (hence (what was) the tax credits). The OTS are now suggesting that the imputation system should be reversed but the rationales change as a result.
I'm happy to spend years making well meaning reports that are pretty much ignored - OTS, where do I sign?
Progress made
Lets not criticise OTS now as they have abolished the 15p per day of Luncheon Vouchers that were tax free and no more tax relief on a horse.
Back to the future
Sounds like close company apportionments to me. Taxing companies on their retained profits. One of the evils of the 1970s. Back to the future I think.
I just wish politicians would stop interfering all the time. Their constant meddling in the name of simplification or so-called level playing fields just makes things worse. People are thoroughly confused these days, and that's because the Government keeps moving the goalposts, not because they don't understand accounts.
Is it really such a huge problem if small businesses don't understand accruals accounting? Actually, most seem to understand it better than politicians think. Maybe they shouldn't judge other people by their own level of business sense.
For instance, I don't think many entrepreneurs think they've made a loss just because they haven't sold all their stock. Most know instinctively that stock is future profit. I don't think the architects of cash accounting do though.