Lifetime events

Bill Dodwell explains the recommendations from the recent OTS review of lifetime events for small businesses 

The Office of Tax Simplification has just published its latest smaller business review (tinyurl.com/yygkjndd), commissioned last summer by the Chancellor. The review looks at key ‘lifetime’ events in the life of a smaller business. The focus of the report is on the smallest micro businesses – that is, businesses with 9 or fewer employees and turnover of less than £2 million. There is a multiplicity of definitions in this sector, with different approaches being taken by ONS (where small is up to 49 employees); HMRC (where small is sales up to £10 million and up to 20 employees) and the complicated three factor company definitions. 75% of micro businesses employ only their owner(s).