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Early day motion tabled by primary sponsor David Drew (Labour and Co-operative Party), on Monday, 17 March 2008, in the House of Commons. It is signed by 30 members in total.

INCOME SHIFTING AND THE FUTURE OF SMALL BUSINESS TAXATION

That this House welcomes the decision announced in the Budget to defer legislation on what has been described as income shifting within small limited companies and partnerships; and calls on HM Treasury and other affected departments to use the additional year that they have allowed themselves for consultation on this issue to undertake a thorough review of more appropriate means of providing smaller enterprises with a suitable legal entity designed for use in the 21st century, and not the 19th century as the limited company was, that will simultaneously reduce the taxation, accounting and regulatory burdens on smaller enterprises, so freeing them to generate wealth and employment in the UK economy, whilst ensuring that they can with minimum effort comply with the taxation and other requirements imposed upon them by law in a way that minimises risk of tax avoidance, creates a level playing field in which all in the sector can compete fairly and ensures that the right person is taxed on the reward they have earned at the right time and in ways which do not create artificial and inappropriate incentives to recategorise employment as self-employment, and the reward for labour effort expended as investment income.

Amendments

The Early day motion has received an amendment.

INCOME SHIFTING AND THE FUTURE OF SMALL BUSINESS TAXATION (1195A1)
The Early day motion has received an amendment sponsored by Robert Smith (primary, Liberal Democrat) and tabled on Wednesday, 19 March 2008. It has been signed by 13 members in total.
leave out from `partnerships;' to end and add `commends the Government for recognising that the initial proposals had serious flaws and for taking the time to consult further; calls on HM Treasury to recognise that profits from a business do not simply represent remuneration for labour, but are a reward for taking risk; urges the Government to drop the proposals altogether if the forthcoming round of consultation shows that they ultimately cannot be made to work; and suggests that a thorough reconsideration of the basis on which small businesses are taxed, in full consultation with all affected groups, may be a more appropriate course of action.'.

Secondary information

Type
Early day motion
Reference
1195 
1195A1 
Session
2007-08
Other sponsors
Peter Bottomley
Bob Spink
Lynne Jones
Mark Durkan
Andrew George
Subjects
Companies Employment Small businesses Taxation
Link
View this Early day motion on www.parliament.uk