By Max Clarke
Regulation, specifically taxation and employment law, hampers decision making and entrepreneurship. This is according to the latest series of Transitions reports carried out by UK based BDO, the world’s fifth accountancy network.
Conclusions from the survey of over 200 managers and senior accountants, published today, also find that: public pressure to enact financial reform risk addressing symttoms of the economic crisis, instead of its inherent causes; that the tax system will gradually be simplified, in turn encouraging investment; and that employment regulations will also diminish, as economic growth will increase employment, lowering regulatory barriers.
Commenting on the report are UK200Group of lawyers and accountants, David Ingall and Jonathon Russel:
David Ingall, partner, JEP Creers commented:
“Trying to get a group to agree on what reforms are required is a nightmare. This is a pull and push situation. HMRC want more control but smaller businesses are fed up with the increasing impositions.
“The solution? It requires the Wisdom of Solomon but one course might be to pick the five most irritating regulations and just get rid of them. The cost could not be too great but it would show a willingness to tackle the problem. The coalition is talking a good talk but action is absent. Some action would make businesses believe, which would be half the battle.”
Said Jonathan Russell, partner, ReesRussell:
“All businesses really want is simplicity in taxation. Some of the complex rules relevant to multinationals may have been simplified but this does not help the bulk of UK businesses. It could be argued that multinationals, as with the top earners, are in a position to arrange their tax affairs so they minimise tax in any event by using different jurisdictions.
“The vast majority of businesses and individuals do not have this ability and as such are a captive clientele. HMRC now like to consider taxpayers as customers. It is time that as customers we were given something which was fit for purpose that delivers what the Government wants — a clear pricing and payment model!”