HM Revenue & Customs: A New Start for Small Business?

Compliance with the tax system is particularly onerous for the proprietors of small businesses. The merger of the Inland Revenue with HM Customs and Excise has created an opportunity to ease this problem, according to the CIOT.

The Chartered Institute of Taxation’s Small Business Working Group has looked closely at small businesses and, based on this research, has made a number of key recommendations to the Small Business Service.

Francesca Lagerberg CTA Fellow, Chairman of the Small Business Working Group at the CIOT, said:

“Ninety-five per cent of businesses have less than nine employees. These micro businesses have the most difficulty complying with tax law. Even though they may not possess the necessary skills to comply with their tax obligations, they are among those most likely to rely on their own efforts to do so. We see the merger as an opportunity to help them.

"We would like to see the new department set down a new coherent policy addressing the needs of small businesses. Micro businesses in particular would benefit from simplification of the system and, subject to the efficient merger of information systems and proper staff training, a ‘one stop shop’ where they can go for guidance on how to fulfil their tax obligations."