Study calls for SME tax rethink

Study calls for SME tax rethinkAndy Street, Mayor of the West Midlands, has called on the Government to cut taxes on small businesses, saying a low and simple flat tax could boost the economy. A study by Nick King, head of business at the Centre for Policy Studies, suggests that many people believe the Government is not on the side of small businesses, with 62% of small firms' bosses saying this is the case. The report suggests small firms with turnover of less than £1m should be able to choose to pay a flat tax on their turnover, opting out of corporation tax, employers' national insurance, VAT and business rates. Mr Street said the plan serves as "a significant simplification of the tax landscape for small firms, and a dramatic reduction in their reporting and administration burden". Home Secretary Sajid Javid will launch the report, saying it “shows how bureaucracy and paperwork are stifling the growth of our small businesses.”