Small firms need 'breathing space'

Date: 19th November 2008

Small businesses need to be given more room to manoeuvre on taxation, it has been argued.

The Chartered Institute of Taxation (CIOT) has said that in light of the economic turbulence the UK has been experiencing, business start-ups should be allowed to defer payments until a more financially suitable opportunity.

Considering this, the institute believes that the business taxation system should be reviewed by the government.

Chief executive for the CIOT, Peter Fanning, commented: "What we have seen in the last month has been quite exceptional.

"No small business, even in a worst case scenario, would have planned for such an event."

One suggestion by the CIOT is increasing access to HM Revenue and Customs' 'Time to Pay' facility, which allows business start-ups to defer taxation payments.

Last week, the Federation of Small Businesses called for a £1 billion small firm 'survival fund', which it argued would not only help the sector, but would revitalise the economy.