The Office of Tax Simplification (OTS) is calling for further work on the potential for a new form of trading vehicle, the sole enterprise with protected asset (SEPA), which would be simpler to administer.
Research has found that one of the main reasons for forming a limited company is to obtain limited liability protection, but that many people who do so then struggle to deal with the tax, accounting and reporting requirements.
A SEPA would allow traders to protect their primary residence while continuing to trade as a sole trader, and would simplify the tax and accounting requirements for unincorporated businesses by obviating a key non-tax reason for incorporation.
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