Promise of reduction in red tape for small businesses

As many of you will be aware, the Inland Revenue and Customs and Excise are merging to form HM Revenue and Customs (HMRC). The new department is keen to look at ways of reducing the administrative burden on small businesses. In the relatively short-term measures proposed include:

• abolishing payments of tax credits via employers
• reducing the tax return for 500,000 small businesses from 16 to four pages and
• looking at new ways of paying and managing VAT online.

A small start you may feel but to help take the process forward, a consultation document has been issued and a summary can be found at www.inlandrevenue.gov.uk/consult_new/small-business-summary.pdf

Do let us know if you have strong views on any of the issues raised.

There is no doubt that the process of reform will take time, probably a very long time, but those of you running small businesses who do battle daily with bureaucracy and red tape will welcome any moves in this direction.