HM Revenue & Customs has revealed a five year business plan outlining new initiatives to help businesses and to improve commitment to transparency. According to the Institute of Directors who carried out a survey of IoD members, there is still a long way to go for HMRC to reduce the administrative burden on business.
Just under a third of the businessmen surveyed said that their dealings with HMRC would lead to them advising a person not to start up a new business. One area of taxation that has lead to this decision is the Pay As You Earn and National Insurance, which is thought to be overly complex and needs to be simplified. As HMRC becomes increasingly computerised, and continues to do so, the administration should continue to reduce for businesses.
The survey also revealed that many business owners found the taxation rules hard to understand and had difficulty obtaining the relevant information from HMRC. For many businesses this is one of the main reasons for using accountancy services, to avoid incurring penalties and late payment charges through misunderstandings of the rules. Over a third of businesses interviewed admitted that it is difficult to obtain relevant information from HMRC.
When questioned on the areas they thought that the Office of Tax Simplification should concentrate on, half said that PAYE and National Insurance while a third wanted the employee benefits system to be looked at. To avoid costly mistakes which could seriously affect your business, outsource your administration to low cost accountants who will maximise your return on investment.
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