04 09 2017

Hammond Promises British Firms Stable Tax Policies

UK Chancellor Philip Hammond has pledged to "promote taxpayer certainty," in response to the recommendations of the Office of Tax Simplification (OTS).

The body, set up specifically to make recommendations on how to alleviate the compliance burden for businesses, said in a July report that, among other things, the UK should make fewer changes to corporate tax legislation.

Responding to the report, Hammond said: "With regards to large business taxation, I encourage the OTS to engage with the consultation announced at Spring Budget 2017 on the risk profiles of large business and promoting stronger compliance."

"As part of that, my officials will explore fully potential opportunities to promote taxpayer certainty."

Hammond said that he agreed in principle with recommendations to simplify the tax code for smaller businesses and align accounting rules and corporate tax rules.

He also appeared to back proposals to allow smaller companies to calculate their profit using the accounting standard FRS105 with no adjustments and for the number of tax adjustments for larger companies to be reduced.

But he said that any regulatory changes would need to be considered for their potential impact on the exchequer and whether they could be aligned with tax simplification plans for unincorporated businesses.

Hammond also welcomed further input from the OTS, which in June had said that it is increasingly seeking to engage with the UK Government early on in the tax policy decision-making process.