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80% of SMEs say the burden of taxation is too great

80% of SMEs say the burden of taxation is too great

SMEs and online accountants are spending a disproportionate amount of time on administration and tax compliance, according to the CIOT.

Andrew Hubbard, the Institute’s immediate past president, said that the new tax changes that occur every year have created a lot of anomalies in the system and it is now very unstable.

He believes that the government should create stability so that people setting up a small business know exactly which tax path they will be following for the next 5 years.

A recent survey carried out by specialist insurer found that 80% of SMEs and limited company contractors feel that the burden if taxation is their major worry.

Last week, George Osborne and David Gauke officially set up the OTS to look into the simplification of the current tax regime. Michael Jack will chair the new body and he already stated his view that entrepreneurs should never feel deterred because the tax system is too complex.

John Whiting from the CIOT will act as the interim tax director for the OTS and he reiterates Jack’s view saying that whilst it is probably impossible to have a truly simple taxation system, working towards a simpler one will help everybody.

Jack and Whiting will be helped by external tax and legal experts who will focus on individual complex areas and provide additional advice to the Office of Tax Simplification over the coming months.

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Image: In Search Of Lost Time by bogenfreund

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