Small firms call for tax overhaul

UK small businesses say the UK tax system is in need of urgent reform, arguing that it is too complex and favours big business, it has been revealed.

A poll carried out by the Forum of Private Business (FPB), found more than half of small and medium-sized businesses believe the tax burden placed on them is unfair and unnecessarily complex.

The findings come just days before the January 31 deadline for the submission of self-assessment forms on the HM Revenue and Customs (HMRC) website.

Phil McCabe, a spokesperson for the FPB, commented: “Our members believe that they are bearing an unfair tax burden because of the moderate sizes of their businesses.

“The complexity of the British tax system is not only time-consuming and frustrating, it also puts small firms at an instant disadvantage.

“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.”

The FPB is calling for a review of the tax system to be a top priority for whichever party wins the impending general election.

“We would like to see [the winning party] lay the foundations of a bold new tax environment where small firms are rewarded, rather than unfairly penalised, for the huge contribution they make to the British economy,” he said.

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