Tax rules threaten small business
Published: 03 March, 2010
LONDON: Over 75% of small businesses believe that they could grow their business if the UK tax system was simplified, according to the Federation of Small Businesses.
Its survey of 1600 small businesses carried out by the federation and ICM Research showed over a third found income tax the most difficult issue to deal with.
Over half citied taxable allowances – the amount a person is taxed on – hardest to get to grips with.
Half said VAT was the easiest type of taxation to understand.
Many businesses do not feel confident dealing with tax issues, with 66% employing professional help. Half of businesses spend less than two hours per week on fulfilling their tax responsibilities, but for one in 10 it takes up more than six hours of their time.
John Wright, chairman of the federation said: "As our survey findings show, three in four would grow their business if the tax system was more simple to understand. The potential investment and jobs which could be created through such a move would provide the economy with the boost it needs to sustain recovery.
"As we head towards a general election the message from small businesses is clear: the incoming government must think small first and get conditions right for entrepreneurs and small businesses to thrive," he said.