Research conducted by Investec Specialist Private Bank and the Entrepreneurs’ Organisation has concluded that unfair business taxation and regulation is of the utmost concern to contractors, freelance consultants and entrepreneurs. Many believe that the existing taxation system could be overhauled to alleviate this burden. Only 17% of those surveyed believe that the current UK taxation system make the UK an attractive location to set up a business.
With regards to the current economic situation, 5% believe that it will be easier to access funding this year. Conversely 25% believe the lack of access to bank loans will have an adverse effect on business throughout 2010.
Commenting on their research, Investec’s Ed Cottrell commented that “there is considerable room for improvement in the overall regulatory and tax environment in the UK.”
Mr Cottrell also stated his belief that such changes “will be key to helping the country recover from the recession”.
Doug Richard, entrepreneur and former Dragons’ Den star, believes that innovators would be more likely to succeed if unfair tax burdens were reduced and regulations were overhauled.
He said: “We are a nation that has everything it needs to capitalise on the opportunities of the 21st century. However, the government must unshackle the only means of increasing wealth and social mobility – the entrepreneurial culture.”
The current low interest rates could encourage entrepreneurs to approach banks seeking finance while the news that corporation tax for small businesses will stay at 21 per cent for the next financial year should be good news!