|
The Association for Consultancy and Engineering (ACE) has welcomed the government’s decision to review the tax regime for small businesses.
In its own analysis of SME tax issues, ACE has identified some proposals that could be explored with a view to improving the tax regime for SMEs. These include:
- Combining PAYE and National Insurance contributions, to simplify the administration of tax for employers;
- Simplifying the definitional aspects of the tax system;
- Extensions to initiatives such as the Business Payment Support Service, which help SMEs to spread tax payments over a more affordable timeframe;
- Making permanent the flexibility over VAT introduced during the recession; and
- Raising the VAT threshold, in recognition of the significant increase in administrative burden that this tax entails.
It is hoped that reforms such as these will help to stimulate business start-ups, as well as protecting jobs in the SME sector. Data from the Office for National Statistics suggests that SMEs account for around 60% of private sector employment.
A spokesperson for ACE said: “Tax is a fundamental factor of how competitive an economy is. Without a tax system that enables businesses of all sizes to grow and flourish, the UK will be at a disadvantage in rebalancing the economy and addressing the budget deficit. ACE therefore welcomes the government’s move to review the tax system for small businesses as an important step toward building a better business environment.”
- ENDS -
For media queries please contact Gavin Pearson (gpearson@acenet.co.uk) (020 7202 0255)
Notes to editors:
To read ACE's tax proposals in full, please click here.
|