Small business groups talk tax

Eight organisations representing both small business and tax met recently to discuss those tax issues which cause problems for growing enterprises.

Speaking on behalf of the bodies represented at the meeting Francesca Lagerberg, Deputy Chairman of the ICAEW’s Tax Faculty, said: "Micro-businesses - that is those with fewer than 10 employees - have the most difficulty coping with the operation of the tax and employment system. Payroll costs and administration, employment burdens, the thorny issue of whether someone is employed or self employed, as well as differing tax treatments of trading entities, all cause real headaches for business.

"The forthcoming Pre Budget Report will see the publication of a discussion paper looking at some of these issues. We hope this will mark the beginning of a process that will bring real benefits to business and begin to address some of its concerns.

"From our side, we are very willing to co-operate with the government in taking the debate forward. We do not expect easy answers or quick wins, but a constructive dialogue and partnership."

The eight bodies represented at the meeting were:

• The Tax Faculty of the Institute of Chartered Accountants in England & Wales
  
• The Chartered Institute of Taxation
  
• The Institute of Chartered Accountants of Scotland
  
• The Federation of Small Businesses
  
• The British Chamber of Commerce
  
• The Forum of Private Business
  
• The Professional Contractors’ Group
  
• The Confederation of British Industry