New research from the Federation of Small Businesses (FSB) has revealed that small firms spend four days per month sorting through red tape.
The survey of 1,685 smaller business owners learnt that they spent over 33 hours every month on internal business administration. In addition, the average small business sees around 70 hours of employee time tied up in business admin alone. FSB members also spend an average of £3,600 on help and advice with tax compliance.
55 percent of the small business owners surveyed said their company’s growth is being held back by the amount of time they have to dedicate to business administration. 76 percent spend more time than they would like on business compliance, tackling issues ranging from tax, employment law issues and insurance to dealing with workplace pensions, accounting tasks or health and safety issues.
Dave Stallon, commercial director at FSB, commented: “The Government has pledged to remove £10 billion worth of red tape over the course of this Parliament. FSB welcomes this focus on deregulation, which should free up small business owners to spend more time doing business and creating economic growth.
“Initiatives like The Red Tape challenge, the ‘one-in-two-out’ approach to new regulations, and steps to boost the regulatory Policy Committee are all moves in the right direction.”
Small businesses and the self-employed will soon have to keep digital tax records and report, on a mandatory basis, electronically every quarter, following an announcement in the Government’s 2015 Autumn Statement.