Accountants risk drowning under a sea of red tape, according to a new survey. Peninsula, the UK's largest employment law firm, found that accountants are spending six hours a week dealing with red tape.
Significantly, 92% of accountants said they were spending more time dealing with ‘red tape’ issues compared with five years ago.
Russell Guest, head of corporate development at Peninsula, said: ‘Since the Labour government came into power there has been a raft of legislation introduced that accountants have had to implement. We are quite literally a “red tape” country. Unfortunately, increased legislation means that accountants have to take time away from running their business.’
Guest believes that small accountants are particularly exposed to the rigours of bureaucracy, because they find it more difficult to employ people to deal with paperwork.
The survey of 941 accountants across the UK also found that 79% believe introducing legislation twice a year will result in a pile of extra paperwork. Of particular concern were forthcoming changes in employment law and health and safety.’Employers failing to implement changes in employment law and health and safety are opening themselves up to litigation. Many do not realise the serious effects that being taken to a tribunal can have,’ said Guest.