Seventy five per cent of small businesses believe that they would be able to grow their business if the UK tax system was simplified, according to research carried out by the FSB and ICM of over 1,600 small businesses.
Over a third (34 per cent) of businesses surveyed said they found income tax the most difficult issue to deal with, while 52 per cent citied taxable allowances - the amount a person is taxed on - hardest to get to grips with.
Over half (52 per cent) said VAT is the easiest type of taxation to understand.
Many businesses do not feel confident dealing with tax issues, with 66 per cent employing professional help. Half of businesses spend less than two hours per week on fulfilling their tax responsibilities, but for one in 10 it takes up more than six hours of their time.
"The Government must recognise how important small businesses are to strengthening economic recovery, said John Wright, National Chairman of the Federation of Small Businesses.
“As our survey findings show, three in four would grow their business if the tax system was more simple to understand. The potential investment and jobs that could be created through such a move would provide the economy with the boost it needs to sustain recovery.
"As we head towards a General Election the message from small businesses is clear: the incoming Government must think small first and get conditions right for entrepreneurs and small businesses to thrive."
In a separate clash with the Government, the FSB has joined forces with other business and employment organisations to call on small firms to sign a petition urging the Government to freeze National Insurance.
Research by the FSB with the Centre for Economics and Business Research (CEBR) found that increasing employers' National Insurance by one per cent will cost 57,000 jobs at a time of record unemployment figures, but will not give any substantial help to plug the Government's gap in public finances.
The FSB wants to see businesses using the petition to persuade the Government to reverse the planned one per cent rise in National Insurance and put a halt on any future rises in the foreseeable future. Raising taxes on small businesses must be a last resort if they are to do their job of helping to put the country on a steady road to recovery.
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