Planned UK Reporting Rules to Hurt Small Businesses, Group Says

The UK’s proposed reporting requirements for close companies would disproportionately burden small businesses, an accountancy organization said Monday.

His Majesty’s Revenue and Customs should focus on “high-risk behaviours rather than volume-based data collection” to reduce the small business tax gap and minimize disruption for compliant businesses, the Institute of Chartered Accountants in England and Wales said in a press release.

HMRC in March proposed new reporting requirements for so-called close companies — typically small companies controlled by five or fewer people who hold a share or interest in a company’s capital or income.

The proposal was meant to target ...