How would introduction of the tax value method affect small business?
• Any negative impact of the tax value method on small business taxpayers should be minimal. • Introduction of the tax value method would offer some benefits for small business, through improved compliance processes and publications. • The cost of transition to the tax value method for small business taxpayers could include: • understanding and applying the tax value method concepts • modifying existing systems, if necessary. • There should not be any need to change the accounting software used by small business taxpayers in the day to day running of their businesses. • Small business taxpayers who do not currently prepare formal accounts would not have to start preparing them to work out taxable income under the tax value method. Equally, small business taxpayers who currently prepare formal statements could continue to use them to work out their taxable income under the tax value method. • Because the tax value method is not expected to generally affect substantive outcomes of the cu
