Tax compliance costs the UK's small businesses nearly £25 billion a year,
according to recent research conducted by the Federation of Small Businesses
(FSB).
The average small firm spends £4,500 and 44 hours a year on tax compliance,
according to the research.
These annual totals could include time spent trying to contact HMRC, the cost of
staff time used to manage compliance, and the price of software subscriptions
and/or an external accountant, among other outlays.
Poor levels of customer service from HMRC are a recurring theme within the
report, making tax compliance even more difficult and stressful for small
businesses.
Tina McKenzie, FSB's Policy Chair, said:
'Tax compliance is far from a niche issue – it affects all five and a half
million small businesses in the UK, costing them £4,500 and 44 hours a year
each on average.
'Collectively, that adds up to an annual total cost to the small business
community of nearly £25 billion and over 240 million hours.
'This is money and time that could be far, far better spent on building up
their business, and the overall cost to the economy in terms of lost growth
and wasted productivity is enormous.
'Given the challenges facing the economy, and the need for growth, reducing
the burden placed on small firms by tax compliance must be a priority –
something the government has recognised as a priority for other regulators.
HMRC should be included in the government's drive to make regulation better
support growth.'
Internet link: FSB