Coalition tax system detrimental to SMEs according to new research

Most small businesses in the UK do not believe that the tax system has helped them in any way since the Coalition Government took control, according to new research from the Forum of Private Business. The Cheshire SME non-profit group took a poll among its members to get an overall idea of the attitudes of SME owners in regards to the Coalition tax changes as the administration reaches the middle of its five year term.

All in all, most of the changes that have been made have been viewed negatively by coalition members with about 28% of business owners stating that they do not think the tax system is as fair as it used to be. A contrasting 17% disagreed and thought there was an improvement in fairness.

About a quarter of those included in the poll thought that the tax system had become more complex than it used to be and a stunning 26% stated that its overall efficiency had gone downhill. Only about ten percent of those in the survey thought that the tax system was an improvement. The last point brings up concerns with how HRMC will be able to work within Real Time Information (RTI) when this new rule comes into effect in April.

The pilot programmes of RTI have not displayed any problems yet and the Forum of Private Business is working alongside the HMRC to make sure that all of its members are aware of the new changes. Despite this fact, research does show that there are plenty of businesses worried about how the government is going to be able to adjust to the huge change.

The study also revealed that the largest problems most small businesses have with tax spending is business rates. About 94% of all SME owners thought that the taxation level placed on commercial properties is too high.