Businesses 'need an easier tax system'

The more complicated a tax system is, the harder it becomes for small businesses to follow it, an expert has stated.

Steve Hughes, economic adviser at the British Chambers of Commerce, noted that the cost of compliance can sometimes hinder companies from expanding.

He stated that the government should always remember the "disproportionate burden" that follows some firms, but he is hopeful that technological advances can stop it from being such a problem in the future.

Economic recovery can only be achieved by organisations of all shapes and sizes working together, Mr Hughes added, with the private sector needing to be given the freedom to create jobs and income.

The Federation of Small Businesses recently revealed that 75% of its members would be able to grow if those in power simplified the tax system, with 34% admitting that income levy was the hardest one to work out.