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Firms willing to pay more for simpler tax system, says FPB
Small businesses would be prepared to pay more tax if it led to simpler laws and a reduction in avoidance amongst big companies, according to a new survey.
In a study by the Forum of Private Business (FPB), some 57% of business owners questioned said they were so frustrated with the current UK tax system that they would pay more in return for simplification.
Meanwhile, 50% of respondents said they would pay higher taxes under a simplified system if it meant that more action was taken to cut down on tax avoidance by their competitors.
‘The cost of complying with Britain's hugely complex tax system is such that, if simplification and profitability result, most businesses believe a little more tax would be a price worth paying,’ said the FPB’s Chief Executive, Phil Orford.
‘Clearly, if the Government is serious about stimulating small business growth, streamlining tax administration must be a priority.’
‘In addition, small businesses are deeply concerned that the tax system favours large companies and is deeply unfair. Plans to clamp down on tax avoidance, for example, seem to fall short in several areas,’ he added.
The Coalition’s new Office for Tax Simplification is currently reviewing the UK tax system, with a view to simplifying and streamlining tax reliefs where appropriate.
It will submit its recommendations to the Chancellor ahead of the March Budget.