Taxing times ahead for small firms, warns the FPB

18 June 2008

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The FPB is concerned that a move by HM Revenue & Customs (HMRC) to reduce the overall number of tax offices in the UK and cut jobs by more than 3,000 could have an adverse effect on many small businesses. The FPB believes that reducing HMRC staff from 12,300 to 9,150 is likely to lead to delays in the administration of tax.

Tax can be a major headache for small businesses, including submitting tax returns online, for example. More than nine million tax returns were issued in 2006–2007. Last year, about 150,000 self-assessment forms were received in the 24 hours before the deadline. The HMRC website was processing more than 6,000 returns an hour – more than 100 every minute.

The FPB believes that the job cuts and the closure of many of the UK's tax offices will only add to the confusion and frustration felt by many entrepreneurs when they are filling out their tax forms. A reduction in staff could mean a corresponding reduction in services, which can only increase business owners' anxiety levels.

"While we can all applaud the cost-cutting exercise, HMRC will need to be careful that the reduction of staff, in particular, does not affect the service offered to smaller businesses," said the FPB's Policy Representative, Matt Goodman. "The demands of running a small business are enough without waiting weeks for your tax papers to make it to the top of the pile."

Small businesses already feel increasingly forgotten about when it comes to tax, and the closure of local tax offices can only add to this feeling of isolation. Tax is a time consuming and difficult path to navigate at the best of times, filled with numerous obstacles. The closure of these offices will only add to an already near impossible procedure.

The FPB is calling on the Government to pay more than just lip service to the real concerns that its members have over administering the tax burden.

Taxing times ahead for small firms, warns the FPB

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