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).