The UK Office of Tax Simplification (OTS) has unveiled a package of recommendations aimed at making the tax system simpler and easier to use for small companies.

These incorporated micro-businesses, employing less than ten people, currently face the same tax system as large companies with hundreds of employees and turnovers of many millions. The OTS believes this is disproportionate and makes recommendations to start overhauling the system to make it work better for small businesses.

OTS chair Angela Knight said: “A company with a few staff should not face the same burdens as a m...