SMEs pay almost £10 billion in tax compliance costs each year, according to research by the Association of Accounting Technicians (AAT).
The survey of 500 businesses reveals that the average SME spends £4,376 complying with business taxes each year. Collectively, the SME sector spends £9.9 billion annually on tax compliance.
Important findings:
- SMEs spend up to 2 hours each week on tax issues
- 70% of SMEs say they spend too much time focusing on tax.
Small business owners say they would rather invest the money spent on tax compliance back into their businesses:
- 1 in 3 would spend more on sales and marketing
- 10% would use it to recruit more staff
- 10% would increase their R&D budget.
Mark Farrar, chief executive of the AAT, said:
“SMEs are the backbone of British businesses but some are being weakened by a hidden £10bn tax burden.
“It is a strong indicator of just how hard dealing with tax can be when 80% of our members, experts at navigating through the intricacies of tax compliance, state that the UK tax system is too complicated.”
Focus on what matters most
By letting us shoulder your tax burden, you can give yourself time to focus on what matters most, your business.
Our accountants will:
- minimise your exposure to business taxes
- make sure you never miss a tax deadline
- act on your behalf with the tax authorities.
Contact John Elliott or Sue Stephens to discuss your tax position.
