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20th June 2008
HMRC cutbacks 'could hurt small firms'
Small businesses in the UK could be adversely affected by plans to cut the number of tax offices in the UK, a leading pressure group has warned.
The Forum of Private Business (FPB) said that the move to reduce HM Revenue & Customs (HMRC) staff from 12,300 to 9,150 could lead to costly delays in how taxation issues for small firms are dealt with.
According to the FPB, many small firms find dealing with tax "a major headache". It noted that more than nine million tax returns were issued between 2006 and 2007.
The organisation warned that staff and office cut backs could add to the confusion some small businesses feel when filling in tax returns.
"While we can all applaud the cost-cutting exercise, HMRC will need to be careful that the reduction of staff, in particular, does not affect the service offered to smaller businesses," said the FPB's policy representative, Matt Goodman.
"The demands of running a small business are enough without waiting weeks for your tax papers to make it to the top of the pile."
Recently, the House of Lords criticised the business tax changes that were introduced in the Budget.
(c) 2008 Adfero Ltd.
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