UK Businesses Waste Time and Money on Taxes
LONDON – UK businesses are wasting as much as a quarter of each month just filing out their taxes, and the admin and assistance costs paid out by businesses each may be as much as half a billion pounds.
In a report released on September 30th the UK Federation of Small Businesses detailed the results of new research on the full extent of the time and expenses faced by the country’s businesses in trying to complying with their regular tax obligations.
The report showed that the average small UK businesses may spend as much as 12 full days a year just to complete all necessary tax calculations, paperwork and filing.
Approximately half of the businesses are spending up to 8 hours per month on tax administration, while 11 percent of businesses claim that they spend as many as six full work days each month on tax preparation and filing.
It is estimated that more than three quarters of small businesses in the UK spend as much as GBP 5 000 per month on tax software, professional assistance, and other administrative expenses, on top of their regular tax bills, adding up to as much as GBP 500 million each year.
The time and cost burden of complying with tax obligations is taking a toll on businesses, as nearly one third of businesses have faced cash-flow problems due to the combined weight of their tax administration costs, tax obligations, and the time spent of completing taxes.