A move by the Coalition Government to simplify the taxation system will undoubtedly be welcomed by residential landlords, says Alex Huxley of Potential 2 Lettings in Ellesmere.
Many buy to let landlords have struggled to keep up with the numerous changes to both the rates and means of taxation but the government has pledged to overhaul the tax system by creating a new body, the Office of Tax Simplification (OTS). The primary goal of the OTS will be to cut red tape for both businesses and private individuals, with an overall focus on providing tax reliefs for small businesses and a radical simplification of the taxation system.
The OTS, headed by an unpaid board, will publish its findings for the Chancellor’s consideration ahead of the next budget. Chancellor George Osborne said: “Two years ago I promised to create the Office of Tax Simplification. Today, we’re delivering on that promise. With its independent, expert advice it will be a permanent force for a simpler tax system.
Michael Jack, Chairman, said: “Entrepreneurship should never be stifled because of an overly complex tax system. That’s why I am delighted that the Government have committed themselves to looking at ways to simplify the tax system, with an initial focus on small businesses.
“Simplification in a complex world is a real challenge but it’s one that has to be addressed if the tax system is not to hinder the economy’s ability to grow.”
By introducing a new, simpler taxation system, the government aims to foster entrepreneurship and encourage economic growth for small businesses by allowing owners to spend more time and resources on core business activity as opposed to tackling an increasingly complicated tax code.