SMEs are spending an average of 15.7% of their total expenditure costs in
fulfilling tax obligations, according to new research.
Figures released by business information company Creditsafe also reveal SMEs
with a turnover of £1m-£5m are attributing the greatest proportion of revenue to
tax – 18.5%.
Tax ranks third in the league table of total business expenditure for SMEs,
with wages accounting for almost a third (29%) of total expenditure and
investment in stock and materials (17.5%). Fuel costs now account for 10% of
David Knowles, marketing director of Creditsafe, said the tax burden on SMEs
impacts profitability and the level of investment businesses can pour into other
areas, such as expanding into new markets.
‘Many firms are struggling to survive as a result of restricted cash flow. A
growing propensity for firms to hold onto their cash and delay payments,
combined with reticence on behalf of the banks to offer credit, could drive many
SMEs to the wall in 2009,’ he said.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states