An endless list of overly complex of business tax reliefs means that claiming the correct allowances and ensuring that claims are effective and meet relevant tax rules is virtually a full-time job, says Yvette Nunn CTA, director of Berkeley Associates
As recently as August the Chancellor, Philip Hammond, wrote to the Office of Tax Simplification (OTS) in response to a report it had issued on simplification of the corporation tax computation.
It is to be applauded that the Chancellor wants to ‘make a tax system simple to understand and easy to comply with, helping ensure the UK remains an attractive location and conducive environment for enterprise’. Some would say the UK though could be losing that position, given the complexities of our system, let alone what the Brexit uncertainties are adding.
On the recommendation to minimise the number of adjustments required to calculate the taxable profit, the OTS issued a consultation in October on the use of accounts depreciation instead of capital allowances as a way of giving tax relief for investment in tangible assets.
