Tax administration an expensive burden to business
According to a poll conducted by the Federation of Small Businesses (FSB), tax administration is costing small firms in the UK just shy of £1 billion a year.
Two-thirds of those that took part in the FSB survey spend an average of just over £3,600 per annum on advice and software to help them meet their tax obligations which, when multiplied across the 200,000 membership of the FSB, translates into a massive £730 million!
In addition to actual revenue expenditure the survey reveals that business owners spend between 4 – 10 days each year fathoming and completing tax forms.
John Allan, FSB national chairman, commenting on the drain of time spent on tax administration said it was, “tantamount to money down the drain as businesses could spend that time growing.” He went on to say, “there have been long running issues with complex tax statuses if you’re a sole trader or running an incorporated business. Creating one new system….will make it simpler. It will free up time for businesses, it will give them time to grow and contribute further to the prosperity of UK plc.”
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