Clarify legal tax planning, Hammond urged

Philip Hamond has been called to use his Budget 2017 on March 8th to put beyond doubt some of the tax-efficiencies that small traders should use but are often afraid to.

The Institute of Directors (IoD) said that the chancellor should next week commit to pressing HMRC to issue a ‘white-list’ of “authentic” and “permissible” tax-planning.

Such a list would encourage the making of genuine investment decisions and transactions, while removing unnecessary or “perceived” tax risks, the institute said.

It would also help with another task the IoD wants Mr Hammond to rise to next Wednesday –striving to correct the “perception that tax planning is undesirable or even unacceptable.”

This has arisen due to media exposés of actual and alleged tax avoidance, the institute said, but can be stopped by “improving the interface between HMRC and business taxpayers.”

Other wishes the IoD has for Budget 2017 are also likely to draw support from freelancers; they include the following four:

- Aligning taxation with the increasingly flexible labour market.

- Demonstrating a determination to implement broad-based simplification of the increasingly complex UK taxation system faced by both business and individual taxpayers.

- Recognising that multinational corporations; FTSE350 companies; mid-sized businesses; small companies; and, microbusinesses ought to face (broadly) comparable taxation liabilities but require different focuses and policies to deliver this.

- Confirmation that the government intends to introduce a £12,500 personal allowance (the amount earnable before tax is levied) during this parliament.

Editor's Note: NATO Summit Wales 2014 image by Foreign and Commonwealth Office .

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