Danny McCance 20 Nov 2017 10:51am

Businesses willing to pay more for simpler taxes

Almost two thirds (62%) of businesses would accept higher taxes in exchange for the simplification of the current tax system

However, the size of the increase is important, with 37% of business leaders saying they would not be happy with an increase higher than 3%, according to a BDO survey.

Simplification was desired across the board by 60% of the 450 respondents, who said that they wanted to see everything from merging income tax with NICs to the gig economy addressed.

The survey found that 58% of business saw capital investment to boost confidence would strengthen UK economy ahead of Brexit.

Find more news, analysis, video and comment on the Budget here

Tax avoidance was a concern as more than a quarter believed that the government needed to leave the HRMC to continue what it is doing, and that it should not create any new rules.

“A commitment to setting out a coherent tax strategy and tax simplification roadmap for the next decade would be a real bonus for business and show that the government is on their side during these uncertain times,’” said Paul Falvey, tax partner at BDO.

More than a third of businesses also wanted to see the government continue with its commitment to OECD proposals to deal with tax avoidance by multinationals.

In August, chancellor Philip Hammond wrote a statement agreeing with the Office for Tax Simplification, who said that the tax code for smaller businesses needed to be made simpler.

Hammond will announce his plans in his Budget this coming Wednesday.