smallbusiness.co.uk: Helping your business think big

The Chartered Institute of Taxation is welcoming efforts by politicians to address the issue of income shifting.

An Early Day Motion relating to this area of small business tax has been tabled in the House of Commons calling for a review into a ‘more appropriate’ way of providing a legal entity for small businesses that will reduce the ‘taxation, accounting and regulatory burdens’ they face.

According to the motion, the ‘limited company’ was designed to meet the needs of the 19th Century, suggesting that it is now outdated.

Responding to the move, Rob Ellerby, president of the CIOT, says: ‘The MPs who tabled this motion are right to say that by extending the process for another year, the government has given itself a great opportunity to think through the issue more fundamentally with a view to coming to a better answer.’

The CIOT suggests such a reform would enable small businesses to better manage their tax affairs.

At present, the professional body has 14,300 members.