The Confederation of British Industry has called on the Government to help small and medium-sized enterprises, such as design consultancies, by simplifying the UK tax system.
In its 2000 budget the CBI SME Council rejected the opportunity to call for several new SME-promoting initiatives. However, it highlighted the need for existing schemes to “fulfil their potential” and “not work contrary to the Government’s overall objectives for enterprise”.
CBI SME tax committee chairman Colin Perry says: “If the Government seriously wants to create an enterprise culture, it needs radical policies that free entrepreneurs from red tape and boost access to finance.
“The Chancellor has put forward some useful proposals which aim to attract private money and increase employee share ownership. But complicated rules, often reflecting unnecessary fears of tax avoidance, have prevented many of these schemes from realising their full potential,” explains Perry. He claims that the Enterprise Investment Scheme is one such initiative which has “complex rules and unnecessary restrictions”.
Perry adds: “Over the past year the burden of red tape and cost of complying with new legislation has continued to put SMEs at a disadvantage.
“We’re proposing that a systematic review of existing tax legislation should be made to ensure it meets the better regulation principles.”