Government 'should create a simpler tax system'

Date: 3rd April 2008

The government should create a simpler system of taxation for small businesses in the UK, according to accountancy firm Tenon.

Head of tax at the firm Andrew Jupp says the administrative and financial burdens created by taxation are major barriers when it comes to starting a business.

"I think you need to go right to the fundamental problem of what stops entrepreneurship and innovation - and that is taxation, red tape and a lack of access to funds," he comments.

Mr Jupp is calling for the flat-rate VAT scheme to be increased - so businesses don't have to calculate VAT every quarter - and said he would also welcome the simplification of PAYE obligations.

Although last month's Budget outlined government plans to increase entrepreneurship in the UK, Mr Jupp says "quirky initiatives" would not be necessary if the basic concerns of business owners were dealt with.

The government announced plans to increase the number of young entrepreneurs, women and over-50s.