Categorized | news

The Institute of Directors speaks out on taxation

The Institute of Directors speaks out on taxation

The Institute of Directors has said that the government’s plan to reduce corporation tax is still not enough to encourage foreign businesses to invest in the UK.

Corporation tax rates recently fell to 28% and the coalition intends to reduce them further to 24%, but the IoD thinks they should be dropped further in order to attract foreign investors. A spokesman for the IoD, Alistair Tebbit, pointed out that the UK has one of the highest rates of corporation tax which means we are not competitive with other EU countries where the average rate stands at 23%.

The Institute has also called on government ministers to reform the IR35 rules that have long dogged contractors. The OTS is about to begin its review of the IR35 legislation and the IoD has already put forward its suggestions for change. As part of the review, the OTS will conduct a series of roadshows around the UK to find out what business owners think about the complexity and cost of small business taxation.

IR35 should be replaced by precise rules, along with a screening test, so that the majority of companies are taken out of its scope. But the IoD’s head of taxation also says that widespread reform of the small business taxation system could be an acceptable alternative.

John Whiting, the Office of Tax Simplification’s tax director, acknowledges that small business taxation is complex and the problem cannot be solved overnight. The OTS is due to inform the chancellor about the areas where simplification should be prioritised, before the Budget next year.

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: The giraffe is the only animal born with horns by badjonni

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice