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Running a small business in the UK today means navigating a growing maze of tax obligations, forms, and reporting requirements. While staying compliant is essential, recent research reveals just how costly and time-consuming that process has become for the nation’s entrepreneurs. In this article, we explore the real-world impact of tax compliance on small firms — and what needs to change to unlock their potential.
New findings from the Federation of Small Businesses (FSB) show that tax compliance is draining nearly £25 billion each year from small businesses in the UK. On average, a small firm spends about £4,500 and devotes 44 hours annually to meet its tax responsibilities.
These figures take into account time spent communicating with HMRC, paying for accounting software or professional help, and dealing with day-to-day tax obligations. The FSB report also highlights widespread frustration over poor customer service from HMRC, which is often cited as a key barrier to effective compliance.
Tina McKenzie, Policy Chair at the FSB, emphasized that this is not a fringe issue: “Every small business is affected. The cost in both time and money is enormous — and it’s hurting growth and productivity across the economy.”
The FSB is calling on the government to prioritize tax reform for small businesses as part of its broader goal to make UK regulation more supportive of enterprise. Reducing this compliance burden, they argue, would free up billions in time and resources that could be better spent on growth, innovation, and job creation.
Check out the FSB website for more information.
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About Accace Adept UK
We are a joint venture between Accace and Adept Advisory, established to pursue a long-term strategy of providing innovative Business Process Outsourcing (BPO) and advisory services to clients in the United Kingdom and South Africa. We joined forces to augment each other’s valuable insight, knowhow and practices, whilst combining our experience in complementary fields of expertise.
About Accace Circle
Accace Adept operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
Accace UK Limited (trading as Accace Adept)
Berkeley Suite, 35 Berkeley Square, Mayfair London W1J 5BF, United Kingdom
