Red tape worse than ever

[peterjhale]

Small businesses claim that the problem of red tape is worse than ever, according to a new survey. The survey, by Bibby Financial Services, claims that firms are finding it harder than ever to keep up with government legislation, with 71 per cent of respondents seeing it as their biggest hurdle over the coming year.

The figures represents an 28 per cent increase on 2004, a year in which the issue of red tape dominated much of the small businessagenda.



What does everyone think?

[Cougar]

My issue is not only that it is there, but that it seems geared towards the size of organisation that has resources to deal with it. Any micro business has to be able to absorb, understand and apply everything may be with just one or two people. It has to do this even though Governement acknowledges that there are so many different types of regulastions that it can justify all the separate departments and quasi departments required to administer and police them! The impact in a small business is that there is sometimes not much time left to actually win work and deliver it!

Just take tax - you may have to deal with all of CT, VAT, NIC, PAYE, Income Tax and customs duty. Each of these is complex in itself. It is the complexity that is time consuming, so this is a call for simplification - not only in tax!

I saw a report recently which suggested that complexity in regulation of all types was the main reason why some micro businesses remain outside what it described as the "formal economy". It was not an avoidance issue per se, though there will be some of that, just that it was hardly worth setting up a micro business if you were then obliged to spend a very large proportion of your time on regulatory matters, i.e. no real time left for earning the profits in the business. I certainly have found that at various times in my own business.

Philip

[Ian J]

The FSA has seen fit to take credit insurance under it's wing from January and I am trying to find out whether I need to be registered and approved by them or not.

I am approached by companies and asked to put together a package of finance and credit insurance and invariably I introduce the prospect to a local credit insurance broker (who is FSA approved) who will look after that side of things. I take no fees from the customer or commissions from the broker as it is incidental to my business and all I do is say "give Bill a ring and I'm sure he will sort you out".

It now seems that I may have to be approved to impart this information and that the official answer to the question "Where can I get credit insurance from" is "I am not allowed to tell you"

There are currently 16 regulators and when asked whether people like myself need to be regulated will tell us that they don't know as the regulations are a minefield. The other thing that they will tell you is that the penalties for transgression are severe.

It will be interesting to know what will happen when someone approaches the forum asking about credit insurance - am I allowed to answer