UK Government – Spring Budget 2023 – Simplifying the Tax System for Small Businesses
In the UK Government Spring Budget 2023, the Chancellor announced a series of administration changes to simplify the tax system to make it easier for small businesses.
A simpler tax system is aimed at freeing up time and money for the UK’s 5.5 million small businesses to grow. With an estimated turnover of £2.3 trillion, they make up 52% of the private sector.
The simplification package includes:
- Changes to the Enterprise Management Incentives (EMI) scheme from April 2023 to simplify the process to grant options and reduce the administrative burden on participating companies. This includes, from 6 April 2023, removing requirements to sign a working time declaration and setting out details of share restrictions in option agreements
- Delivery of IT systems to enable tax agents to payroll benefits in kind on behalf of their clients – allowing agents to better support their clients and reducing burdens on employers
- Consulting on the Help to Save scheme
- Measures to simplify the customs import and export processes, including improvements to the Simplified Customs Declaration Process and the Modernising Authorisations project
The Chancellor also announced a number of consultations to pave the way for future reform, including:
- A commitment from HMRC to deliver a systematic review of guidance and forms for small businesses
- A consultation to simplify calculating income tax for smaller, growing sole traders
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
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