Tax costs rocketing
The cost of paying tax has rocketed over the past three years with accountants spending 60% more time completing client tax returns and charging more as a result, according to a new survey.
More than 90% of those questioned in the ACCA survey said that time spent on tax compliance has grown ‘rapidly’ while 83% said the burden has risen progressively in the last year alone.
IR35 was claimed by 88% of the 750 ACCA members surveyed as the cause of an increase in work, with 54% of respondents saying the new tax measure increased their workloads by 40%.
ACCA’s head of tax, Chas Roy-Chowdhury, said: ‘Tax in the last three years has increased as a proportion of GDP – and the cost of paying that tax – as revealed by this survey has increased by up to 60%.
‘So individual taxpayers and businesses are having to pay more tax and to ensure that they comply with their obligations under the tax regime.’
Corporation tax was said by 77% of those surveyed to have increased the work on its compliance.