A survey of over 1,000 businesses, conducted by the British Chambers of Commerce, has revealed that a large number feel the UK tax system is fundamentally ‘unfair’ and disproportionately penalises them.
More than two-thirds of the respondents reported being concerned that HM Revenue & Customs (HMRC) does not apply tax rules fairly across all sizes of business.
The BCC is now calling on the government to improve the service that HMRC provides to businesses. A good start, the BCC suggests, would be matching investment in tax avoidance work with funding for business support.
In addition, it has again asked the government to refrain from introducing any significant costs for the remainder of this parliament.
Simplifying the UK tax system…
Martin Williams, Partner at George Hay, said:
“Increasing upfront taxes and costs serve only to intensify the financial and administrative burden that many firms perceive; particularly, those organisations who operate on a tight cashflow.”
“When it comes to compliance with UK tax policy, there is too often a tendency for HMRC to see smaller businesses as ‘easier’ targets. Consequently, these firms spend valuable time worrying about what they may or may not be doing wrong as opposed to confidently running their business”.
“As well as stepping up its efforts to help smaller businesses to get their tax right and investing more in its frontline, HMRC should do more to simplify complexities within the UK tax system and address escalating costs with a view to giving businesses the freedom they need to invest and compete.”
“Businesses can also begin to help themselves by looking at their own profit and cashflow forecasts, pre-empting the impact of any changes on the horizon and planning accordingly.”
Here at George Hay, we understand the challenges businesses face as a result of the economy, regulatory changes and the UK tax system more generally. Whilst compliance is a key concern for you, we also know that strategic advice, direction and support is equally important.
We can help you to navigate the complexities associated with running a business, to plan ahead and to keep pace with new legislation. We can also help you to adapt to the changing economic climate and to make good business decisions, whilst ensuring that you are always compliant.
Our team have years of experience in advising businesses of all sizes, from small owner-managed companies and start-ups to large blue-chips. So, if you’d like to discuss your circumstances in more detail with one of our experts, contact us today on 01462 708810.