Tax simplicity 'welcome', says CIOT

The Chartered Institute of Taxation (CIOT) has expressed support for Alistair Darling's attempts to simplify the tax system for small businesses.

Commenting on how next month's Budget is likely to impact on the UK's smaller enterprises, CIOT vice president Andrew Hubbard acknowledged the chancellor's efforts to make taxation simpler but said that he faces "real difficulty in making practical changes".

This is because of the longstanding "dilemma" surrounding the knowledge that an attempt to simplify the system can often be self-defeating by making things more complicated instead, Mr Hubbard explained.

He added: "The Institute supports a lot of what the chancellor is trying to do and the simplicity agenda is something that we - wherever possible - do support.

"The key for us is to make sure that it's done properly, with proper consultation."

Mr Darling presents his first Budget as chancellor on March 12th.