We’re prepared to pay more for a simpler tax system

freelancesupermarket.com newsroom

18 January 2011

57% of businessmen and freelancers are so concerned about the complex nature of the UK’s corporate tax system that they would be prepared to pay more tax if the regime was simplified and reduced avoidance among large organisations. These are the findings of a new survey from the Forum of Private Business.

45% also said they would pay more for a simplified system that went hand in hand with a reduction in regulatory red tape.

The FPB's chief executive, Phil Orford, pointed out the current cost of compliance is such that businesses believe paying a little extra tax would be worth it if simplification and profitability are the results.

Orford said the government must prioritise streamlining tax administration if it is serious about stimulating growth amongst SMEs. Small businesses are concerned that the current tax regime favours large organisations and proposals to clamp down on avoidance appear to fall short in various areas.

The government should take notice of the feelings of small business owners. 78% feel that the current tax system is a deterrent to hiring due to the complex nature of payroll taxes and increases in NIC payments.

57% of the survey respondents want to see incentives built into the tax system to encourage firms to recruit more staff. They would also like the government reward people who want to work by increasing the amount of employees taken out of the tax system.

David Cameron repeatedly says that the private sector is going to drive the economic recovery in 2011, but if SMEs won't hire, can that scenario be realised?

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