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Small firms feel tax system biased against them

New research from the British Chambers of Commerce (BCC) has found that companies feel that the tax system in the UK is biased towards bigger firms.

This research saw the BCC survey more than 1,000 UK businesses and the results showed that 58% of those that responded feel that the current tax system disadvantages smaller firms. They also reveal that 67% – roughly two-thirds – think that HMRC takes a more lenient approach to tax regulations depending on the size of the company, with 70% of small firms feeling this compared with 59% of medium and large ones.

Small firms were also the most likely to think that HMRC applied tax regulations inconsistently depending on where a company is based, with 67% expressing that belief.

In addition to these frustrations, the BCC research also found that UK companies have concerns about the level of support offered by HMRC to help them comply with new legislation like Making Tax Digital. Almost half (49%) of the firms surveyed expressed this view, including 51% of small firms.

Head of economics at the BCC, Suren Thiru, stated that the results show HMRC views small firms as easier to target than their larger counterparts.

In response to the findings, the BCC has urged the government to provide more funds for the provision of tax advice and support for companies. It is possible that more companies will also look to specialist self-assessment accountants to help them navigate the changes to the tax system.

Posted by Mark
April 30, 2019
Tax

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