About one third of privately owned businesses in the UK believe that the country's tax rules encourage business and entrepreneurship.

A study compiled by PricewaterhouseCoopers showed that the favourable response to HM Revenue & Customs had increased from a fifth of respondents a year ago.

The survey also found that 62% of the 423 companies polled felt that new methods of communicating with the taxman had been very helpful.

The survey findings will be welcomed by HMRC officials, who have made a concerted effort to improve relations with business.

Further reading:

Hartnett podcast heralds new era for adviser relations