UK Government Challenged On Small Business Tax Reform

by Robert Lee, Tax-News.com, London

18 October 2004

Eight of the main organisations representing small business and tax met recently to discuss tax issues which are causing problems for growing enterprises.

Speaking on behalf of the bodies represented at the meeting Francesca Lagerberg, Deputy Chairman of the ICAEW’s Tax Faculty, noted: “Micro-businesses – that is those with fewer than 10 employees – have the most difficulty coping with the operation of the tax and employment system.

“Payroll costs and administration, employment burdens, the thorny issue of whether someone is employed or self employed, as well as differing tax treatments of trading entities, all cause real headaches for business,” she observed.

Ms Latherberg expressed hope that the publication of a review of small business taxation in the forthcoming pre-Budget Report will address some of these pressing concerns, and looked forward to “constructive dialogue and partnership” with government on such issues.

Represented at the meeting were: the Tax Faculty of the Institute of Chartered Accountants in England & Wales; the Chartered Institute of Taxation; the Institute of Chartered Accountants of Scotland; the Federation of Small Businesses; the British Chamber of Commerce; the Forum for Private Business; the Professional Contractors’ Group; and the Confederation of British Industry.

Recommended