The complexities of business taxes are being blamed for a lack of growth in some small firms according to new research from the Federation of Small Businesses and ICM.
The survey of 1,600 small firms found that three-quarters of businesses would grow their company if tax rules were made simple. One-third said they found income tax was the most difficult to deal with, while 52 per cent said taxable allowances were the hardest to understand.
John Wright, National Chairman of the Federation of Small Businesses explained how the Government needed to work hard to help small firms prosper.
‘The Government must recognise how important small businesses are to strengthening economic recovery,’ he said. ‘As our survey findings show, three in four would grow their business if the tax system was more simple 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.’
While it appears that many firms struggle to get to grips with tax, it is reassuring to know that 66 per cent of businesses employ professional help.
‘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,’ Mr Wright added.
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