Tax burden for small businesses

A recent report has found that the tax burden for small UK businesses is much higher than for larger businesses.

Research carried out by KPMG showed that the cost of filling in tax returns and dealing with tax administration was nearly £2bn a year for small companies compared with £642m a year for large companies.

Steven Hill, policy adviser at the British Chambers of Commerce said: ‘The report confirms what we all know about the tax system. It is regressive. The absolute burden of the tax regime may be bigger for large businesses, but the relative burden on smaller businesses is much bigger, as they have fewer resources.’