SMEs worried about increasing tax burden

Small businesses in the UK increasingly think that taxes are a major barrier to their future success, a new report has indicated.

Overall, the most recent Bowmark Optimism Index showed that the owners of the UK's small and medium-sized enterprises (SMEs) are considerably less confident about the future state of the UK economy than they were in January.

During the last quarter, 25 per cent of small businesses reported either stagnant or falling profits.

Interestingly, two-thirds of firms said they believed current taxation policies were hampering their growth prospects - up from 43 per cent at the start of the year.

Charles Ind, managing partner at Bowmark, commented: "The outlook for the economy in the next six months is more uncertain than at any time in recent history.

"Entrepreneurial company directors have become increasingly apprehensive and cautious in their approach."

Recently, the Professional Contractors Group (PCG) called for an independent review of business taxation policies in the UK.

According to the PCG, the current regime is not helping micro businesses, sole traders and freelancers in the country.