A new global tax survey has been published which ranks each country in terms of ease of paying taxes and the time given to comply.
The survey, by the World Bank and IFC, is undertaken by test-running a tax return for a theoretical flowerpot company. The UK finished 16th out of 183 for the simplicity of paying taxes. Not bad, but it represents a five place drop from last year.
Is this significant? Probably not. But what’s crucial is that small and medium-sized businesses find the process of complying to the UK’s tax laws as painless as possible, otherwise it will work as a disincentive to many prospective start-ups. It will be interesting to see what policies are announced in Chancellor George Osbourne’s 2011 budget as it reacts to the Office of Tax Simplification’s advice for simplifying the tax system for SME’s.
One way of making the process of filing tax returns easier has nothing to do with governmental policy, but instead lies in the innovation of online accounting processes. And it’s this issue that is alluded to in the report:
“The ability to pay and file electronically has a significant positive impact… Electronic filing is shown to be well established in developed economies and it is increasingly being implemented in developing economies. This requires the buy-in and trust of taxpayers with regards to the tax payment system, as well as the availability of technology.”
It’s just this kind of technology that Crunch provides for the small business community. By enabling businesses to keep up-to-date with all the relevant accounting processes via an easy-to-use online system – with the support of accountants – tax deadlines and procedures won’t become an unnecessary burden.
To view the report, click this link.