Taxation burden 'impacting small business profitability'

Date: 9th January 2009

The taxation burden on British small businesses is limiting profitability, according to a new piece of research.

An investigation commissioned by Creditsafe found that the average small company - such as a partnership or sole trader - spends a sixth of its expenditure on meeting its tax obligations.

While an accountant can provide essential advice on tax organisation and payment, some believe that more should be done to help small firms.

David Knowles, marketing director for the company, commented: "This tax burden impacts profitability and the levels of investment that can be devoted to other aspects of the business, such as expanding into new markets, marketing or employee development."

He added that the small firms were the "lifeblood" of the British economy and provided a "significant proportion" of the country's gross domestic product.

Smaller enterprises - such as business start-ups - up and down the UK are currently busy preparing for the upcoming self-assessment tax return deadline, which is scheduled for January 31st.