Complex tax rules 'hindering small businesses'

Less-sizeable firms are failing to expand as fast as they could because of complex tax rules hindering their growth, one organisation has suggested.

The Federation of Small Businesses (FSB), in conjunction with ICM, revealed in a survey that three-quarters of organisations of this kind feel they would do better if the UK tax system was simplified.

Over one third cited income charges as the most difficult levy to get to grips with, while 52% think taxable allowances are too complicated.

On the other hand, the same percentage of companies responded that VAT is the easiest issue to deal with.

John Wright, national chairman of the FSB, said that heading into the general election, many political parties should be considering how to simplify procedures in this area to boost the economic recovery.

Last month, Laura Carver of the Consumer Credit Counselling Service noted that the charity received many calls from self-employed business owners seeking help for their financial situations.