According to the latest research, small businesses in the UK are spending 15% more than in 2011 on tax and costs relating to employment.
Compliance with government initiatives costs small businesses an average of £480,788. Policies such as business rates, auto-enrolment and Insurance Premium tax are bumping up tax and employment costs.
The Impact of Government Policy Index (IGPI), which was released by Federation of Small Businesses (FSB) and the Centre for Economics and Business Research (CEBR) also found that the cost of administrating tax within their businesses cost an average of £5000 per year.
And things aren’t set to improve with considerations needed for increases in living wage, employer auto-enrolment contributions, increased business rates and let’s not forget Making Tax Digital and Brexit!
“With small businesses faces rising costs and uncertainty, it’s our ongoing commitment to ensure our clients are planning ahead and reviewing efficiencies and growth strategies.” Commented Ben Eley, Partner at Barnett Ravenscroft.
“We have recently appointed Brenda Thompson into our payroll team, helping us to offer a cost-effective solution for those businesses facing the increased government obligations driven by auto-enrollment and RTI.”
“In addition, we have recently welcomed Ben Cooper who is helping to implement Making Tax Digital changes within the client base.”
If you’d like help understanding your tax and employment cost obligations better or need expert advice to ensure you’re planning for the future, then get in touch.