The Chancellor has announced a series of admin changes to simplify the tax system to make it easier for small businesses to interact with. These include changes to the Enterprise Management Incentive (EMI) scheme.
The details of the changes per HMRC’s policy paper Spring Budget 2023 Media Factsheet: Cutting & Simplifying Tax for Businesses to Invest and Grow are:
- “A simpler tax system frees up time and money for the UK’s 5.5 million small businesses to grow. With an estimated turnover of £2.3 trillion, they make up 52% of the private sector.
- The simplification package includes:
- Changes to the Enterprise Management Incentives (EMI) scheme from April 2023 to simplify the process to grant options and reduce the administrative burden on participating companies. This includes, from 6 April 2023, removing requirements to signs a working time declaration and setting out details of share restrictions in option agreements.
- Delivery of IT systems to enable tax agents to payroll benefits in kind on behalf of their clients – allowing agents to better support their clients and reducing burdens on employers.
- Consulting to the Help to Save scheme.
- Measures to simplify the customs import and export processes, including improvements to the Simplified Customs Declaration Process, and the Modernising Authorisations project.
- The Chancellor also announced a number of consultations to pave the way for future reform, including:
- A commitment from HMRC to deliver a systematic review of guidance and forms for small businesses.
- A consultation to simplify calculating income tax for smaller, growing sole traders.
- This Budget package marks the first stage of a continuous programme of work on tax simplification. Officials will continue to engage businesses directly and prioritise this as part of all tax policymaking.”
See also our story on extending the cash basis.
Related content from Claritax Books
Employee Share Schemes, written by chartered tax adviser and barrister Thomas Dalby, examines the range of official share schemes. The book offers clear and practical guidance for employers considering the implementation of such schemes and for their professional advisers.