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| Complex tax rules are holding small firms back |
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A survey carried out by the Federation of Small Businesses (FSB) of over 1600 firms has revealed that around 75 per cent of small businesses believe that they would be able to grow their business if the UK tax system was simplified. Over a third (34 per cent) of respondents cited income tax as the most difficult issue to deal with, while 52 per cent reported that taxable allowances are the most complex to manage. VAT was considered to be the simplest tax to deal with by 52 per cent of repsondents. A half of firms spend less than two hours a week fulfilling their tax responsibilities, but for 10 per cent of firms it occupies more than six hours of their time. John Wright, the FSB's national chairman, said: "The government must recognise how important small businesses are to strengthening economic recovery. "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." With a general election looming, the FSB called on the incoming administration to "think small first and get conditions right for entrepreneurs and small businesses to thrive".
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Saturday, 06 March 2010 | 1655 Hits |
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