The Forum of Private Business is calling for key tax reforms ahead of the Budget to help small companies drive job creation and economic growth.
The Forum of Private Business (FPB) is calling for key tax reforms ahead of the Budget to help small companies drive job creation and economic growth.
Among the lobbying group's suggestions is changing the existing £5,000 national insurance holiday for the first ten employees recruited by start-ups to apply to the first two new staff taken on by all companies.
The Forum also suggests handing private lenders tax breaks to boost available finance as well as drastic improvements to HM Revenue & Custom's (HMRC's) systems.
According to FPB research, while 54 per cent of business owners feel the current deficit reduction programme is ‘about right', 44 per cent call for wholesale changes to the structure of the UK's tax system.
Some 53 per cent of respondents believe HMRC is doing a poor job in supporting them with 52 per cent feeling its communication is below-par.
Looking to the Budget, business owners prioritise reducing fuel taxes to ease costs, a VAT reduction for labour-intensive industries and removing barriers to employment, such as cutting employers' national insurance.
FPB chief executive Phil Orford says, ‘The Budget is a real opportunity to remove the growth barriers for small firms created by the complexity of the tax system. It is clearly one that should not be missed.
‘In particular, our members want a level playing field on tax, and the UK's tax system to be conducive to business growth and success rather than a hurdle that is a struggle to overcome.’
In its Budget submission the Forum is urging the Chancellor to announce progressive measures on tax to incentivise behaviour that encourages investment in UK businesses.
Other proposals include additional tax relief if a business fails before a loan is repaid with the lender being able to ‘claw back’ up to 50 per cent income tax relief (at the top rate) on money lost if the firm fails, in addition to tax saved when the loan was issued.
The organisation is also in favour of scrapping the 50 per cent income tax rate, balanced by raising the minimum earnings threshold for paying tax to £10,000.
See also: Shop locally says FPB