Are you willing to pay for a simpler tax system? According to SMEs who responded to a survey by the Forum for Private Businesses (FPB), many of you are. In fact, 57% said they would accept paying more tax if it meant a simpler system. It seems a dangerous admission to make as the Government actively seeks to simplify taxes; perhaps they’ll keep these findings in mind.
It’s rather concerning to hear that 78% of respondents said that the current tax system deterred them from employing new staff. If this is an accurate reflection of business owners across the country then clearly the complexity of the tax system is providing a major barrier to small business growth and the economic recovery at large.
SMEs singled out National Insurance, PAYE and business rates as three main problem areas.
FPB research manager, Thomas Parry, said that tax administration is seen as a barrier to growth for small firms.
“Small businesses would be prepared to pay a little more in tax, if as a result there was simplification and a reduction in a number of taxes, leading to greater profitability,” he said. “Businesses feel that if certain regulations and restrictions were reduced or removed, they would be able to grow their business faster.”
Here at Crunch, we’ve seen a huge amount of interest from single person businesses who are considering expanding their operations and utilising our new payroll service for up to ten employees when it launches this week. In fact 15 % of our customers have expressed an interest in employing staff via our payroll service. Our job will be simple, to make the accounting process as simple as possible for all our customers.
Our online payroll software will be make the process of paying your employees simple and hassle free by calculating PAYE and NI contributions, providing support for all related statutory matters (including maternity/paternity pay, sick pay and student loan deductions) and drawing up Year End return forms.