According to the results of a new survey by online accountants Sage, the UK tax system needs to be radically simplified.
This is the view of over 2,000 self employed contractors and small companies who took part in the survey in March 2010. Overall, the respondents felt that the rules governing PAYE, VAT and Corporation Tax are way too complicated and as many as 80% felt that current legislation was preventing both them and their contractor accountants from seizing tax planning opportunities.
The research found that nearly two thirds of SMEs did not know what tax allowances there are entitled to. Furthermore, over 70% felt that the tax system in this country was actually acting as a barrier for many would be entrepreneurs.
Small businesses are generally regarded as engine room for economic success in the UK and have become a key focus for the main political parties as we enter the final days of the election campaign. The proposed hike in employer’s national insurance contributions is still dominating the political landscape and many experts now feel that this could be the tipping point for a Tory victory.
A spokesperson from Sage said that there is a great deal of confusion in the SME marketplace with regard to the tax system in this country. They suggested that this was the cause of huge frustration amongst small businesses, many of who do not seek the advice of their accountant as much as they should do.
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Image: Confused like Green spaghetti by tanakawho
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