Mid-Sized Firms Anticipate More Red Tape In 2015

Grant Thornton Urges Change To Bill Before Parliament

07.01.2015

Mid-sized businesses are expecting to struggle with more red tape in 2015, new research has found.
 
Accountancy Grant Thornton's Agents of Growth series revealed a 5% year-on-year increase in the number of MSBs who anticipate a greater regulatory burden in 2015.
 
This is believed to be partly due to the Small Business, Enterprise and Employment Bill currently before Parliament, which if introduced would oblige companies to collate and publish reports on how quickly they pay suppliers.
 
Companies will also be required to publish details of individuals who have more than a 25% shareholding in their business.
 
Grant Thornton is urging the government to amend the Bill, which also contains several positive measures for SMEs, by replacing the definition of SME, which is currently taken from the Companies Act.
 
By using the definition used under R&D tax relief instead, the firm says this will extend the benefits to mid-sized businesses and save them from additional regulatory burdens.
 
"The government has done much to find ways of reducing red tape on our smallest firms, however 2015 needs to be the year that government officials also focus on reducing the regulatory load faced by mid-sized businesses," said Grant Thornton's Head of Tax Jonathan Riley.

Expert Opinion
This research has shown a light on the key issues which are facing medium-sized businesses in the coming year, highlighting specifically how many expect to face a greater level of red tape and regulation across the next 12 months.

"Grant Thornton's report has highlight many key issues and considerations for the Government to look at in the next few months and it will be interesting to see if the Government reacts at all to the recommendations contained within it.

"In the meantime, it would be wise for medium-sized businesses to not face the issue of regulatory burden alone and speak to legal advisers about the best approach to the various issues they face."
Steven Beahan, Partner