We’re ready to pay for simpler taxes, claim businesses.
Small business owners have said they would be willing to dip into their own bank accounts in order to bring about a fairer and less complex tax system.
A poll carried out by the Forum of Private Business (FPB) found that, of those business owners questioned, over a half (57 per cent) would be prepared to pay more for a streamlined tax regime so long as it was easier to understand and delivered genuine rewards.
Some 45 per cent would tolerate higher tax bills if there were an accompanying reduction in the amount of administrative bureaucracy and red tape involved in complying with the rules.
Elsewhere in the survey, a majority of employers (78 per cent) felt that the complexity of payroll taxes and increases in national insurance contributions deterred firms from taking on more staff. A further 45 per cent said the tax system hinders financial planning and 41 per cent believed that it impedes prompt payment.
A number said they would like to see taxation rates for employees and the self-employed more closely aligned in any reform of the IR35.
Commenting on the findings of the survey, Phil Orford, the FPB’s chief executive, 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.”
The tax system is set to undergo a series of reforms, which means that now may be a good time to look at your own business tax planning. Remember: we are here to help make sure that you both comply with the rules and pay no more tax than you should be paying.