ICAEW asks EU to remove red tape for SMEs

EC plans to amend the reform legislation governening European small to medium-sized enterprises (SMEs) have been welcomed by a leading accountancy body.

The Institute of Chartered Accountants in England and Wales (ICAEW) responded to an EC consultation by agreeing changes were needed and adding a series of recommendations to ease the "regulatory burden" on UK-based SMEs.

Head of medium sector issues Clive Lewis comments: "A fresh approach to SME policy across Europe is needed - one that is framed by a coherent set of principles throughout the policy cycle, from conception to definition, implementation to evaluation."

It suggested that a more coherent exemptions policy is required to aid struggling SMEs in reducing administrative burdens - particularly in the employment law sector - along with extra assistance for SMEs attempting to break into international markets.

This news follows recent calls by the ICAEW for the British government to introduce new measures to eradicate confusion for key business stakeholders from abroad regarding their tax position in the UK.