Taxes for small firms 'should be simpler'
Oct 15 2008
Small businesses find it difficult to adapt in hard economic times as the tax system is so complicated, according to an industry body.
The Association of Chartered Certified Accountants (ACCA) says recent changes in the methods make it harder for small firms.
According to the body's Perspectives on Fair Tax report, businesses now feel like 'tax collecting agents for the government' and the system is complex and 'lacks transparency'.
The ACCA states the failure to index link thresholds and allowances has created 'stealth taxes' and also criticised new powers given to HM Revenues and Customs.
Chas Roy-Chowdhury, head of taxation for the association, says: 'A disturbing trend is that there appears to be a consistent response from the UK that taxes are unfair, too complex, lack transparency and that there is inadequate communication from the tax authorities.'
The spokesperson adds the more complex the system is, the more likely it is for avoidance or evasion to occur.
Recent research from the Forum of Private Business found 54 per cent of companies think the cost of tax is a barrier to growth, while 60 per cent think legislation is a hindrance.
The Association of Chartered Certified Accountants (ACCA) says recent changes in the methods make it harder for small firms.
According to the body's Perspectives on Fair Tax report, businesses now feel like 'tax collecting agents for the government' and the system is complex and 'lacks transparency'.
The ACCA states the failure to index link thresholds and allowances has created 'stealth taxes' and also criticised new powers given to HM Revenues and Customs.
Chas Roy-Chowdhury, head of taxation for the association, says: 'A disturbing trend is that there appears to be a consistent response from the UK that taxes are unfair, too complex, lack transparency and that there is inadequate communication from the tax authorities.'
The spokesperson adds the more complex the system is, the more likely it is for avoidance or evasion to occur.
Recent research from the Forum of Private Business found 54 per cent of companies think the cost of tax is a barrier to growth, while 60 per cent think legislation is a hindrance.
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