Small businesses hit out against tax system
Jan 29 2010
A taxing issue for small businesses
SMEs have attacked the complexity of Britain’s tax system which they say puts small businesses at an unfair disadvantage.
Some two-thirds believe the tax burden placed on them is unfair, and more than half believe the system favours big companies, according to a poll from the Forum of Private Business (FPB).
Rachel Andrews, owner of Andrews Computer Services, says: ‘You have to go through so many hoops to get allowances that you’re much more likely to claim if you can afford to pay advisors. There should be a flat rate of corporation tax for companies regardless of size. If the government simplified the system, it would save money in all its helpline costs.’
Phil McCabe, spokesperson for the FPB, says: ‘Big companies have the expertise and resources to understand the system and minimise their tax burden. For most of our members, hiring an outside tax consultant represents a significant cost few can afford, especially in the midst of a recession. Small firms [should be] rewarded, rather than unfairly penalised, for the huge contribution they make to the British economy.’
Of the 100 businesses polled, 45 per cent of respondents found the tax burden to be a ‘very serious’ issue for their firms.
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