This system is far too taxing for small firms (From Warrington Guardian)

This system is far too taxing for small firms

THE Federation of Small Businesses is calling for changes in regulations to make the administering of the self-assessment tax scheme easier for everyone.

The FSB believes that the Inland Revenue and taxpayers would both benefit from anything that spreads the flow of tax returns more evenly throughout the year, particularly because the current January 31 deadline falls after Christmas.

It suggests one option would be for the self-employed to be allowed to file their tax returns within a year of their accounting date.

Simon Sweetman, of the FSB's taxation unit, said: "Human nature being what it is, more and more people are leaving filling in their tax return until the last two weeks before the deadline.

"The problem gets worse every year and the system is then clogged for months to come.

"It makes sense to me to allow different types of taxpayers to file their returns at different times of the year."

Other changes put forward by the FSB include:

l A facility to pay income tax by direct debit in monthly instalments

l A facility to pay over the Internet using a credit card

l A single point of contract in a local tax office, rather than call centres, to assist people completing their returns.