26 Jul 2018
The British Chambers of Commerce (BCC) has urged HMRC to ‘reverse the burden and complexity’ associated with tax administration and compliance.
A survey carried out by the BCC and software company Avalara revealed that 75% of businesses believe the overall burden of tax administration and compliance has increased, when compared to five years ago.
64% of firms surveyed stated that VAT generates ‘the biggest administration and compliance burden’, whilst many businesses reported that the ‘vast array of rules and rates’ can be confusing.
According to the survey, firms also feel under pressure to be ready for the April 2019 introduction of the government’s landmark Making Tax Digital (MTD) initiative.
The BCC stated that there is a ‘real need’ to reduce compliance costs, transaction costs and the complexity of business tax. It is calling for HMRC to make compliance easier, and improve its process for collecting tax.
‘Companies now routinely cite tax administration and compliance, rather than regulation, as their biggest single source of administrative headaches,’ said Dr Adam Marshall, Director General of the BCC.
‘If the government wants its ‘global Britain’ vision to become a reality, it is time to tackle the huge costs and complexities of the UK tax system, which sap away time and resources that could be better spent raising business productivity and growth.’
As your accountants, we can relieve you of the burden that tax administration often presents. Please contact us for more information.