Tax complexity is 'stifling business growth'

Date: 3rd March 2010

Small businesses in the UK would be more likely to thrive and expand if the country's tax regime was easier to understand.

This is the view of the Federation of Small Businesses (FSB), which said many firms are struggling to "get to grips" with issues surrounding income tax and VAT.

According to a recent FSB survey, which was carried out in conjunction with ICM, more than three-quarters of small businesses feel their enterprise could grow if the tax regime wasn't so restrictive.

The study also revealed that 66 per cent of small businesses have adopted the help of financial professionals to help them deal with tax issues.

John Wright, national chairman of the FSB, said: "The government must recognise how important small businesses are to strengthening economic recovery.

"As our survey findings show, three in four would grow their business if the tax system was more simple to understand. The potential investment and jobs which could be created through such a move would provide the economy with the boost it needs to sustain recovery."