There is no need to change the legal definition of small firms as long as changes to incoming shifting tax laws are stopped, one industry body has claimed.
Speaking after an early day motion calling for the creation of a new legal entity for businesses was proposed, Simon Briault, spokesperson for the Federation of Small Businesses, claimed that the move would be welcome, but not necessary.
He said: "We don't have to change the legal definition of companies for this [changes in the tax laws] to be stopped, that's not actually necessary, but we like the idea that it's against these proposals, but there's no actual need to redefine the legal status of small businesses."
Mr Briault added that, following the government's plans to delay its income splitting proposals, it is now a case of wait and see as to what they intend to do next.
Income shifting allows family owned firms to pay dividends relatives in order to reduce their tax liabilities.
