Small businesses 'find tax system confusing'

Complicated tax rules are partly to blame for small businesses failing to grow, according to research by the Institute of Credit Management and Federation of Small Businesses (FSB).

The research shows that three-quarters of small businesses believed they would grow if the tax regime was simplified.

Many businesses do not deal with tax issues themselves, with 66 per cent turning to professional assistance.

John Wright, national chairman of the FSB, said the results should signal to the government the importance small businesses could play in economic recovery.

He added: "As we head towards a general election the message from small businesses is clear: the incoming government must think small first and get conditions right for entrepreneurs and small businesses."

A separate poll carried out by the Forum of Private Business (FPB) in January found similar results.

Phil McCabe, spokesman for FPB, said that as well as being frustrating and time consuming, the British tax system disadvantaged small businesses because they often do not have the expertise of larger firms to understand the system.

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