Matt Stambach, tax director at Spencer Gardner Dickins argues removing one P&L rule not even in force will do little to reduce red tape for business when the fundamental issue is the huge complexity of rules and lack of interest in simplification
Red tape is certainly an issue, but for many businesses the challenge is not one individual requirement; it is the cumulative burden of compliance. The real test is whether businesses actually notice a reduction in compliance costs.
Businesses have to navigate an increasingly digital tax system alongside their existing obligations. HMRC’s rules also prescribe how information can move between different parts of the digital accounting system. None of those requirements is necessarily unreasonable in isolation, but collectively they require time, appropriate systems and often professional support.
For an owner-managed business in particular, every hour spent dealing with administration is an hour that cannot be spent running or growing the business.
