DANBRO CONTRIBUTES TO TAX SIMPLIFICATION DRIVE

DANBRO CONTRIBUTES TO TAX SIMPLIFICATION DRIVE

Danbro, the specialist accountancy firm for contract and freelance workers, has given its views on the government’s efforts to simplify the tax system.

Shortly after taking office, the new coalition government announced the creation of an Office of Tax Simplification (OTS) to conduct two reviews into the UK tax code – one into streamlining the 1,042 tax reliefs, allowances and exemptions currently in place and one into how the tax system can be simplified for small businesses, including a review of IR35.

Given his expertise in working with contractors, Danbro director Damian Broughton has contributed to a detailed response for the OTS advising on a number of regulations it believes could be reformed or renewed, as well as the need to reform the infamous IR35 legislation.

IR35 was introduced in 2000 to counter perceived tax avoidance by workers receiving payment from clients via an intermediary, but its many critics have argued that the rules as they stand are too subjective.

Damian said: “As a firm specialising in accounting services to contractors operating through their own small business, Danbro believe that the OTS could greatly reduce some of the red tape and complexities that have and continue to trouble many contractors operating their own small businesses.

“We are encouraged by the OTS’s intentions to review legislation like IR35, which still remains a grey area. We envisage that IR35’s one size fits all approach will be replaced with a more targeted method and hope that its current ambiguity will be lifted.”