A call for tax reform as firms lose £5k a year

SMALL firms are calling for tax reform, according to a new report.

The survey has revealed that three quarters of small businesses need specialist help to get their taxes right.

The report, conducted by Taxing Times, states that firms are losing £5,000 and 15 working days a year due to compliance issues.

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Participants said they found determining tax rates to be a ‘challenge’.

The survey revealed that small businesses spend, on average, 95 hours a year complying with VAT, PAYE and Employer National Insurance Contributions.

The majority of participants said that the ability to pay in instalments would make the process more straightforward.

Mike Cherry, national chairman of the federation of small business, said: ‘Giving firms an estimation of what tax bills will look like a few months before they’re due would help businesses to plan ahead.

‘Equally, the ability to pay in instalments could make managing cash flow more straightforward.

‘The easier taxes are to pay, the easier it will be for HMRC to collect revenue,’ he added.

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