WA23

Government urged to reduce business tax compliance costs

The Government must work to reduce the cost of tax compliance for businesses, according to members of the Treasury Select Committee.

A recent inquiry revealed that the Inland Revenue and Customs & Excise had 'failed to establish the actual overall administrative costs of tax compliance incurred by business'.

However, the inquiry also revealed that businesspeople believe the cost of compliance has increased.

The Institute of Directors reports that 78% of its members said that they are spending an increasing amount of time completing tax compliance paperwork.

The Committee reported that there is currently no reliable method of measuring the cost of compliance, and called on the Government to establish an accurate system of measurement, while also working to reduce compliance costs.

Michael Fallon, Committee chairman, said, 'A deliberate and determined effort should be made to harmonise pay as you earn and national insurance contributions and to reduce the complexities of statutory sick pay'.

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