The Great Debate UK

Price of tax collection hits small businesses hardest

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The cost of tax collection in the UK is almost 20 billion pounds per annum, according to a recent report from Britain’s Institute of Economic Affairs, a free-market lobby group.

The amount reflects the cost of compliance and administration as well as Britain’s handicap of having the longest tax code in the developed world, co-authors Francis Chittenden, Hilary Foster and Brian Sloan write in “Taxation and Red Tape”.

“The authors believe that the cost of tax-related red tape to businesses could be reduced by about 5 billion pounds,” says Philip Booth, editorial and programme director of the IEA, which published the research.

“This may not sound a lot but the burden of tax compliance on small businesses is disproportionately large. This burden remains hidden from public view but the costs are very real.”

The causes of the crash

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philip-boothhighres3- Philip Booth is editorial and programme director at the Institute of Economic Affairs. He is editor of “Verdict on the Crash,” a new book available from the IEA. His opinions are his own. -

In “Verdict on the Crash” we argue that government failure and not market failure is responsible for the collapse in financial markets.

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