The Forum of Private Business (FPB) has urged the government to involve small businesses in its
tax-making decisions.
A new
tax forum has been announced by the government and the FPB believes smaller firms should be at the heart of any consultation, reports the Birmingham Post.
The new forum is believed to be made up of senior representatives of multinational companies and high profile representatives of big business, with its aim to tackle the problem of the UK's
tax system.
Matt Hoodman, FPB policy representative told the newspaper that the impact higher taxes have on its members is "just as damaging".
"The Treasury should consider putting together a similar group focused on the process of small business taxation," he remarked.
Over the last 12 months the amount of corporation tax paid by small businesses has increased from 19 per cent to 21 per cent and is due for a further increase in 2009.
The tax rate paid by bigger companies was cut in the 2007 Budget.
Recently the FPB advised the owners of small firms to guard against the effects of the credit crunch on their cash flow following a warning that banks are withdrawing funding from small businesses.
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