386 – Did you get your tax return done on time?

The FPB’s Phil McCabe: deep anger over the current taxation system

Business Car Manager: Editor’s Blog

I HOPE you all managed to get your online tax returns in by the January 31 deadline. My landlord, Peter Edney, is an accountant, and he had the usual last minute rush, but he got them all processed for another tax year…well, all bar one client on whom he is still waiting.

However, tax remains an issue for small businesses. Well, doesn’t it always? But aside from the fact that we don’t like paying it, the system is not only complex but seemingly skewed towards larger firms.

That’s certainly the view of the Forum of Private Business (FPB), which conducted a survey of its SME members.

An overwhelming 43% said ‘fairness’ should be the main priority for the tax system. The next popular priority was ‘simplicity’, which was supported by one in five smaller businesses, echoing widespread anger with a system which is among the most complex in the world.

Additionally, 13% said they wanted to see the tax system reformed to make Britain more competitive internationally.

And in more general terms, 45% of respondents said their tax burden was a ‘very serious’ issue for their firms.

I spoke to the FPB’s Phil McCabe on Friday, who told me that members of the FPB believed they were bearing an unfair tax burden because of the moderate sizes of their businesses.