If a start up or small limited company is not yet making a profit and therefore not liable to pay corporate tax, it should be possible to make a simple corporate tax return without asking a (sometimes expensive) professional advisor to do it. At present the return is too complicated and particularly jargonistic to be able to do this. If the company has only a limited number of transactions e.g. up to 500, it should be possible to file an inhouse income and expenditure record. Perhaps there should be a nominal fee for screening these records, although it could be considered an investment of time for future benefit.

 

 

 

 

Why is this idea important?

If start ups and small companies can save unecessary expenditure related to proving corporation tax compliance in their critical early phase of operation, ultimately more small companies will stay in business and succeed, generating greater tax revenues in the long term.

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