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Overhaul of tax system urged by FSB

The Federation of Small Business (FSB) has said that an overhaul of the tax system should be a priority for politicians in the run-up to the next election.

Tax emerged as the main concern voiced by small business owners when they were asked about election issues by the FSB, a lobby group with 185,000 members. Complaints mostly focused on disproportionate penalties for late returns and "draconian" tax inspections.

Neil Hamper, FSB taxation chairman, said: "Tax cuts will be important at the forthcoming election, but small businesses also want a commitment from politicians to make the taxation regime fairer and less brutal."

Mr Hamper said there were particular concerns expressed by the self- employed. Many entrepreneurs felt unfairly targeted by inspectors who appeared to believe that the self-employed were "inherently untrustworthy".

Many entrepreneurs felt unfairly targeted by inspectors who appeared to believe that the self employed were inherently untrustworthy

The FSB is urging politicians to consider eight tax reforms, in addition to calling for the abolition of the IR35 legislation, which was introduced in 1999 in an effort to clamp down on freelancers providing their services through a company or partnership as a mean of avoiding tax.

Published: Monday, 14 February 2005

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