31 Jan 2019
According to new research, UK small businesses are spending 15% more on tax and employment obligations when compared to 2011.
The Impact of Government Policy Index (IGPI), which was compiled jointly by the Federation of Small Businesses (FSB) and the Centre for Economics and Business Research (CEBR), found that the average UK small business spends £480,788 on complying with government policies, including business rates, auto-enrolment and Insurance Premium Tax (IPT).
The IGPI also revealed that small firms lose an average of £5,000 per year to tax administration and paperwork.
'Come the beginning of April, small firms will not only have Brexit Day to worry about, but also Making Tax Digital (MTD), a higher living wage, rising employer auto-enrolment contributions and further business rate hikes,' said Mike Cherry, National Chairman of the FSB.
'The competition to attract entrepreneurs to the UK is more intense than ever. With Brexit on the horizon, it's critical that the government at all levels does its utmost to help, rather than hinder, the UK small business owners who are being tempted to other shores.'
As your accountants, we can assist you with your bookkeeping and compliance requirements. For more information, please contact us.