As the Budget 2012 draws ever closer, the Forum of Private Business (FPB) has highlighted research from its panel suggesting a major re-think is needed on business taxation in the UK.
Survey results from its tax and budget member panel indicated that 44% felt wholesale changes to the structure of the UK’s tax system were required, whilst 24% wanted tax breaks to simplify the system.
Many also felt that HMRC could improve its service to UK businesses, as bureaucracy was still said to be hindering many SMEs. In fact, more than one in two respondents weren’t happy with HMRC’s efforts to support them.
Changes that businesses would like to see in the Budget 2012 include reduced taxes on fuel, reductions in VAT for labour-intensive industries and the removal of barriers to create employment opportunities, such as reducing levels of employers’ National Insurance.
The FPB Chief Executive, Phil Orford, said “The Budget is a real opportunity to remove the growth barriers for small firms created by the complexity of the tax system. It is clearly one that should not be missed.”
“It is also time to see genuine tax incentives to boost employment and investment in small businesses – including more encouragement for private lenders to compete with banks and stimulate funding for all firms”, he added.