Chancellor must explain why the OTS is to close, say MPs

The chancellor must explain why he believes the Office of Tax Simplification (OTS) should be abolished says the House of Commons’ Treasury Committee.

The MPs are asking the chancellor to outline the thinking behind the decision to proceed with the closure of the OTS what analysis supports its closure and whether he believes the tax system is now successfully simplified. In a recent evidence hearing Bill Dodwell director of the OTS argued against the closure claiming the government would ‘lose a champion for simplification’.

In separate correspondence to the committee the OTS set out key potential opportunities for tax simplification. This includes the £85 000 threshold at which businesses must register and charge VAT on sales an ‘unusually high’ threshold which ‘impacts businesses at a key point in their development’ because small businesses ‘limit their turnover’ to remain below...