Small Businesses Voice Big Tax Concerns

by Robert Lee, Tax-News.com, London

24 September 2007

Outrage was recently expressed by the FPB (Forum of Private Businesses) over the announcement that hardly any corporation tax is paid by larger companies.

The nature of larger corporations is such that they have many more resources, and are able to employ the expertise of tax mitigation strategies - giving them an automatic advantage over smaller businesses.

Matt Hardman, campaigns manager for the FPB commented: "In his last Budget, Gordon Brown increased corporation tax for smaller businesses. Now we learn that almost a third of big companies paid no corporation tax in the 2005–06 financial year and a further 30 per cent paid less than £10m each.

"Our members will be outraged by this news. They feel that they are being made to pay more into the tax system because they do not have the capacity of large companies to dramatically reduce their tax burdens."

A recent survey by the independent Small Business Research Trust (SBRT), showed that the number one concern for small businesses was taxation, followed by closely by employment regulations and business rates.

Brian Morris, Press Officer for the FPB backed Mr. Hardman's concerns, arguing that: "Faced as they are with increased insurance costs and bills for complying with recent legislation on maternity and holiday benefits, small-scale companies certainly do not need to be shelling out even more."

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