Yesterday I led a debate on tax reporting for small businesses and the self-employed.

Small businesses are the backbone of our local economy, employing thousands of people and generating wealth and prosperity for our communities. This was demonstrated to me only last week when I had the pleasure of speaking to over 50 small business men and women in Borehamwood. Their businesses ranged from financial services to recruitment, to solicitors to digital marketing.

These hard working people from Borehamwood and Bushey to Radlett and Potters Bar demonstrate the energy and creativity to put their own careers and income on the line to build thriving businesses. This is also borne out by national statistics. According to latest figures from the Federation of Small Businesses, they account for 99% of all private sector businesses, with total employment of over 15 million- over 60% of all private sector employment in the UK and a turnover of 1.8 trillion.  

There is understandable concern about any measures the government may introduce that could distract small business people from their already extremely demanding day to day work, through additional new regulations or costs.

During the debate I therefore sought clarification from the government that their proposals do not amount to quarterly tax returns, that users will be fully consulted and that systems are properly tested before full roll out.

I also called for a commitment to proper availability of information, software, and where necessary training for small businesses. We need more detail on how these proposals will affect businesses that do not currently use computers and how they will be able to adapt.

I made the point that it is vital that the net effect of these measures is to reduce and not to add to the regulatory burdens upon the businesses of Hertsmere.