Category: Employment Law, Taxation and Legislation for Contractors

Freelance contractors looking to expand their business offerings are being hindered by complicated tax regimes, it has been warned.

Business operators have to spend more time complying with tax obligations if they are not straightforward, preventing them from building up their company, explained Steve Hughes, economic advisor at the British Chambers of Commerce.

Changes to the tax system increase costs as Brits get used to the new rules, he continued.

"The government should always bear in mind the disproportionate burden that falls on the UK's smallest firms as a result of the changes that they impose," Mr Hughes commented.

He called for technological advances to be taken advantage of to allow firms to contribute to economic recovery without battling with tax regulations.

Research carried out by the Federation of Small Businesses revealed that three-quarters of those questioned believe they would be able to grow their business if the tax system was simplified.

Posted by Sarah Putt