Small firms 'should not focus on tax problems'

Small firms in the UK should view paying tax as a measure of success, according to John de Groot of new business firm StartupCo.

According to figures from the Department for Business, Enterprise and Regulatory Reform, 12% of small and medium-sized enterprises (SMEs) felt that taxation was the biggest obstacle to success that they faced.

However, Mr de Groot pointed out that it was not beneficial for these firms to focus on the negative aspects of tax.

"It is much too easy for businesses, particularly small businesses, to decry the fact that they have to pay all this tax when they are probably making profits anyway," he said. "If they did not make profits they would not be paying tax in the first place."

He added that individual businesses are "unlikely to be able to influence government policy", and that it is up to larger lobbying organisations to try to make an impact.