FSB: 'Small firms fail to grow because of complex tax rules' (From Watford Observer)

FSB: 'Small firms fail to grow because of complex tax rules'

9:10am Thursday 11th March 2010 in

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Research carried out by the FSB (Federation of Small Businesses) and ICM of more than 1,600 small businesses showed that 75 per cent of small businesses believe they would be able to grow their business if the UK tax system was simplified.

More than a third (34 per cent) of businesses surveyed said they found income tax the most difficult issue to deal with, while 52 per cent citied taxable allowances - the amount a person is taxed on - hardest to get to grips with.

More than half (52 per cent ) said VAT is the easiest type of taxation to understand.

Many businesses do not feel confident dealing with tax issues, with 66 per cent employing professional help. Half of businesses spend less than two hours per week fulfilling their tax responsibilities, but for one in 10 it takes up more than six hours a week.

FSB West Herts Chairman Philip Gregory said: "The Government must recognise how important small businesses are to driving economic recovery.

"As our survey findings show, three out of four would grow their business if the tax system was easier 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."