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Tax rules stifle business growth

Published on 1 Mar 2010 under category: legal

Small business growth is being stunted by the complicated tax regime, according to a new report from two industry bodies.

Research from the Federation of Small Businesses (FSB) and the ICM Research found that 75 per cent of the 1,600 small businesses surveyed believe their business could grown much faster if the tax regime was made easier to understand.

According to the findings, over half (52 per cent) found VAT easy to manage, but over a third (34 per cent) struggled with income tax.

John Wright, National Chairman of the FSB said: "The Government must recognise how important small businesses are to strengthening economic recovery.

"The potential investment and jobs which could be created through such a move would provide the economy with the boost it needs to sustain recovery."

Sixty-six per cent of businesses are dependent on professional help because tax regimes are so difficult and time-consuming to understand.

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