Owners of SMEs are asking for the new Government that comes out of the General Election to make taxation easier.
The software company Sage conducted a survey that asked 2,000 SMEs what the largest barriers to starting up were, to which about 72% stated that the complexity of HMRC rules is a large problem, while another 76% felt they were missing tax breaks they were eligible for due to the fact that the system was too hard to properly navigate.
MD of direct marketing company, The Data Partnership, Victoria Pooley stated that there is currently too much red tape and thresholds surrounding the taxation laws that make it hard for a company to grow in particularly with offshore call centres.
The Sage survey also found that when offered a chance to make one change to the way the tax system is set up 36% of all SMEs would like it to be simpler, while the next largest group at 26% reported they would freeze the VAT at about 18%. A small portion of 6% responded that they would like to see the 50p income tax rate for high earners scrapped.
Tax specialist for the accountant firm RSM Tenon, Andrew Hubbard, stated that for the most part all business owners simply want to be left unbothered and most the time when a change is made to simplify the process of taxes it only incurs more problems and costs.
MD of Sage’s accountants division, Jayne Archbold, stated that when the economy is shaky being aware of the tax breaks available to a company can mean the difference between failure and success.