Self-employed enjoy budget tax relief

Chancellor Alistair Darling has announced that the tax system for the self-employed is to be simplified.

The moves, laid in the Pre-Budget Report, aim to reduce paperwork and save money for the thousands of entrepreneurs and small businesses across the country.

He said: "Working with business, we need to do more. I am announcing three reviews proposing simplification to the tax system that will let 3 million self-employed people pay their tax and National Insurance contributions more easily and 500,000 businesses reduce their paperwork by removing a separate payroll."

The measures will include giving more guidance to firms to deal with tax collection and doubling the short form three-line account business tax threshold to £30,000, as well as making self-employment forms shorter for tax returns.