Small business on verge of tax rebellion
Small business is so angered by the UK tax system, many are considering rebelling against their legal tax obligations
The
Professional
Contractors Group has warned small business taxation is getting close to
‘dangerous territory’ and taxpayers’ willingness to comply with their legal tax
obligations would weaken as anger against the present tax system increased.
The group blames HM Revenue & Customs’ rhetoric over avoidance in part
for a ‘breakdown in relations between the tax authority and small business in
recent years’.
PCG has called for an overhaul of the tax regime, criticising its complexity,
uncertainty and ‘sometimes strange and inconsistent tax outcomes’, particularly
the retroactive impact of the latest changes or proposals such as the
simplification of capital gains tax (CGT) and rules designed to stop ‘income
shifting’ in family-run businesses, the Financial Times reports.
PCG, which has 16,500 members, was formed in 1999 to lobby against a tax
change affecting freelancers and it backed the husband-and-wife team behind
Arctic Systems, who won a legal battle last year against the government over
income shifting.
Further reading:
Fair family business tax is ‘mission impossible’
Budget reaction: Income shifting warning despite delay
Read
the Financial Times story