TaxAdministrationTax burden too high for SMEs

Tax burden too high for SMEs

Report paints tough picture for small companies

The administrative burden of complying with tax regulations is much higher
for small and medium-sized businesses (SMEs) than for larger companies, a report
by HM Revenue & Customs has revealed.

Based on research by KPMG, it showed that the collective cost of filling in
tax returns and dealing with tax administration was nearly £2bn a year for
companies of between one and nine employees, compared with £642mn a year for
those with more than 250 employees.

Filling in tax returns and application forms costs businesses with no
employees (or nano businesses) about £1.2bn a year.

Steven Hill, policy adviser at the British Chambers of Commerce said: ‘The
report confirms what we all know about the tax system. It is regressive. The
absolute burden of the tax regime may be bigger for large businesses, but the
relative burden on smaller businesses is much bigger, as they have fewer
resources.’

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

1m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2m Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

2m Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

3m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

4m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

4m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

2y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

2y Fraser Simpson, Reporter