Business owners frustrated by tax laws

Published: 17 January, 2011

New research has found small business owners are so frustrated with the complexity of the UK tax system that they would pay more just to see it simplified.

Well over half (57%) of business owners surveyed by the Forum of Private Business said they would be willing to pay more tax in exchange for a simplified system - providing the system led to greater rewards.

Fifty per cent said they would be prepared to pay more under a simplified system if that system cut down on tax avoidance among their competitors. Tax avoidance is typically carried out by bigger businesses with the resources to exploit geographic loopholes, according to the Forum of Private Business.

The study also revealed 45% of business owners would tolerate a higher tax bill under a simplified system if it was accompanied by a general reduction in legislative red tape.

The coalition government's new treasury department - the Office for Tax Simplification - is currently working on tax simplification proposals ahead of the March Budget.

Forum chief executive Phil Orford said: "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.

"Clearly, if the Government is serious about stimulating small business growth, streamlining tax administration must be a priority."

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