This proposal has since been over complicated and extended by HMRC.

What should have been the opening up of a simpler way to paying tax on the amount of tax collected after making an allowance for operating costs, has turned into a bureaucratic nightmare. Yvette Nunn, president of the Association of Taxation Technicians, called it: a good idea gone bad.

‘The so called—simpler tax rules for small companies—is so poorly thought through that I certainly will not be recommending it to our clients unless strongly amended.’
Vince Blaeford, Senior Partner, Blaeford Gordon.