New calls to change tax system for businesses

A business accountancy firm has called for the UK government to concentrate on the creation of a more straightforward format for the taxation of businesses.

Andrew Jupp, the national head of taxation at accountancy firm Tenon, has called for the introduction of a less complex method of taxation for businesses, involving an increase in the flat-rate scheme governing VAT.

A decrease in the taxation levels applied to small to medium-sized enterprises has also been suggested.

"I think you need to go right to the fundamental problem of what stops entrepreneurship and innovation - and that is taxation, red tape and a lack of access to funds," said Mr Jupp.

"If you took away those barriers, I think a lot of these slightly more quirky initiatives wouldn't be necessary."

Mr Jupp has also called for an overhaul of the system governing PAYE, as a way of making compliance less problematic for businesses.