New small business tax unit announced

Details of a new small business unit that will transform tax administration for small businesses, were announced last week by David Varney, Chairman of Inland Revenue and Customs and Excise.

The new unit will sit at the heart of HM Revenue and Customs (HMRC). It will be charged with improving customer experience and compliance as well as reducing costs - for both businesses and HMRC ( by eliminating unnecessary contact. It will ensure that the development and delivery of the tax system takes full account of the needs of small business and that necessary contact is handled effectively, efficiently and comprehensively.

According to the news release, the longer-term goal for HMRC is to enable its support and compliance staff to take a "whole view" of each customer, tailoring the services provided and minimising the burden of compliance by providing:

* joined-up systems so that business needs to provide information only once, when possible through a single form;

* integrated audits covering direct and indirect taxes;

* a single account through which all payments and repayments may be made;

* streamlined and effective support and access to information in a way that better suits small business customers, including more effective use of information technologies and the internet.