Fulfilling your tax obligations

Burden on SMEs impacts on profitability

New research reveals small businesses in the UK are devoting more than a sixth of their overall expenditure to meeting tax requirements.

SMEs are spending an average of 15.7 per cent of their total expenditure costs in fulfilling tax obligations, according to new research.

Figures released by business information company Creditsafe also reveal that
18.5 per cent of SMEs with a turnover of £1m-£5m are attributing the greatest proportion of revenue to tax.

Tax ranks third in the league table of total business expenditure for SMEs, with wages accounting for almost a third (29 per cent) of total expenditure and investment in stock and materials (17.5 per cent). Fuel costs now account for 10 per cent of overall costs.

David Knowles, marketing director of Creditsafe, commented that the tax burden on SMEs impacts on profitability and the level of investment businesses can pour into other areas, such as expanding into new markets.
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