Feeds

Small biz would pay more for simpler tax

Assuming competitors pay more too...

Top 5 reasons to deploy VMware with Tegile

Small business owners would pay more tax, if the system was simpler and it cracked down on tax avoidance by their competitors.

Smaller firms believe they're at an unfair disadvantage compared to bigger companies. Most smaller companies also complained that the tax system deters them from hiring more staff.

Phil Orford, chief exec of the Forum of Private Business, said: “The cost of complying with Britain’s hugely complex tax system is such that, if simplification and profitability result, most businesses believe a little more tax would be a price worth paying.

“Clearly, if the government is serious about stimulating small business growth, streamlining tax administration must be a priority.

“In addition, small businesses are deeply concerned that the tax system favours large companies and is deeply unfair. Plans to clamp down on tax avoidance, for example, seem to fall short in several areas.

“How can the government continue to allow major retailers to set up shop in the Channel Islands to deliberately undercut small shops and internet businesses by exploiting a VAT loophole that clearly distorts competition and leads to tax abuse?” he asked.

The Forum of Private Business surveyed its Tax and Budget member panel in response to the government's promise to review the tax system via the Office for Tax Simplification.

Some 57 per cent of those surveyed said they would pay more tax in exchange for a simpler system and less red tape.

The impact of VAT rises seems mixed on FPB members – 21 per cent it would have a significant impact, but 48 per cent said it would create minimal problems for their business.

Seventy-eight per cent agreed that the tax system deters them from hiring new staff; 45 per cent said the tax system has a negative impact on financial planning; and 41 per cent said it impedes prompt payment.

In other news, the Federation of Small Business said that smaller firms are less confident now than they were a year ago.

The FSB's "Voice of Small Business Index" fell for the third successive quarter to -13.2 – the deepest decline since March 2010, when polling began.

The lobby group said the private sector recovery stumbled in 2010. It said that cash-flow constraints caused by higher utility bills, fuel duty and VAT coupled with the impact of public sector cuts meant growth in 2011 "is also likely to be sluggish at best." Bad weather at the end of 2010 also had a negative impact.

The picture for employment is not much better – 77.7 per cent of FSB respondents said they expected to maintain current employment levels and 12.4 per cent expect to cut staff numbers, up from 10.4 per cent in the third quarter. ®

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.