The new Office of Tax Simplification
The new Office of Tax Simplification (OTS) was established on 20 July 2010 by the Chancellor and Exchequer Secretary.
The OTS has been established to provide advice to the Chancellor on simplifying the UK tax system. The objective is to find ways to reduce compliance burdens on both businesses and individual taxpayers by drawing together expertise from across the tax and legal professions, the business community and other interested parties.
At the launch the Chancellor commented that "two years ago I promised to create the Office of Tax Simplification. Today, we’re delivering on that promise. With its independent, expert advice it will be a permanent force for a simpler tax system."
Initially, the new body will conduct two reviews, the first looking at a list of all reliefs, allowances and exemptions administered by HMRC to see how they can be streamlined.
The second review will identify areas of the tax system that cause the most day-to-day complexity for small businesses and recommend priority areas for simplification. The OTS will also look specifically at alternative legislative approaches to IR35 as part of this review.