I HOPE you all managed to get your online tax returns in by the January 31 deadline. My landlord, Peter Edney, is an accountant, and he had the usual last minute rush, but he got them all processed for another tax year...well, all bar one client on whom he is still waiting.

However, tax remains an issue for small businesses. Well, doesn't it always? But aside from the fact that we don't like paying it, the system is not only complex but seemingly skewed towards larger firms.

That's certainly the view of the Forum of Private Business (FPB), which conducted a survey of its SME members.

An overwhelming 43% said 'fairness' should be the main priority for the tax system. The next popular priority was 'simplicity', which was supported by one in five smaller businesses, echoing widespread anger with a system which is among the most complex in the world.

Additionally, 13% said they wanted to see the tax system reformed to make Britain more competitive internationally.

And in more general terms, 45% of respondents said their tax burden was a 'very serious' issue for their firms.

I spoke to the FPB's Phil McCabe on Friday, who told me that members of the FPB believed they were bearing an unfair tax burden because of the moderate sizes of their businesses.

"The complexity of the British tax system is not only time-consuming and frustrating, it also puts small firms at an instant disadvantage," said Phil. "Big companies have the expertise and resources to understand the system and minimise their tax burden. For most of our members, hiring an outside tax consultant represents a significant cost few can afford, especially in the midst of a recession."

Quite right. Let's hope whoever wins the next election has the backbone to do something about simplifying our complex and big business oriented tax system. Starting with simplification.

TAGS: Forum of Private Business, tax

IT'S ALWAYS pleasurable to hear from a reader who found our advice useful.

One business car reader wrote to us about whether he should continue to take a cash allowance or take a company car.

One of our experts, Richard Bunn from FleetLine, provided a series of pros and cons for our business car reader to consider. It seems his decision went the way of the company car - a good decision I think given his situation. This is what he said.

"Thank you so much for your advice. I have opted for the company car which was delivered last week and I think I made the right decision. I have sold my Focus for £900; I could have sold it for £1300 but some bodywork damage meant I had to reduce the price. The cash goes some way towards not receiving a car allowance any more!

"I hope that over a three-year period having a company car will save me money. Straight off I save on insurance and breakdown cover and come August when the road tax and the MOT are due I will be relieved that I have a company car.

"But more than any financial benefits I have hassle-free motoring. So thank you once more for your advice."

A pleasure - and no problem.

For more on this, read our Ask the experts question: Should I take the car or the cash?

And here, in my blog, there's further commentary on a neighbour of mine who came to me with the same question: it's Blog 382 - Cash or Car?.

TAGS: cash or car, Richard Bunn

TOOK the train up to Central Contracts to visit md Mike Lloyd and his team in their very smart offices in Stoke.

For the train journey I'd ordered mobile broadband from O2 and was keen to use it. Having turned up the day before (thank you to my neighbour David for signing for the package), I was keen to try it out: you know, write a story and deliver it to the website on the move.

Sounded good, this, being fully wired all the time. But the execution wasn't quite as planned. The trouble is the reception on the train from Euston to Stoke is so intermittent it drove me nuts. When it worked it was very good but the signal kept on dropping out. Really, really annoying...

Anyway, my frustrations aside, it was good to see Mike and find out what was ticking in his world and see the BVRLA-approved car leasing broker Central Contracts operation.

What most impressed me about the building was the upstairs area with a 'music' room. "All the staff spend 15 minutes in here before the start of the day," said Mike. Reading my slightly bemused expression, Mike went on. We play relaxing music so they can clear their heads. So when they start work at 0930 their heads are clear and they are ready to go. We all come up here."

Sorry, let me rephrase that: what impressed me most was not the upstairs area per se, but the methodology of clearing out the overnight debris and mind clutter so the sales and support team could concentrate on the day job ahead.

For a small business, you don't expect always expect such forward thinking. But it obviosusly works. The company is well ahead on sales in the first quarter; clearly the appetite for business cars is definitely out there in 2010.

This daily routine is all part of the Central Contracts commitment to training. All staff are fully trained to offer best advice to both small - and some large - companies wanting to know the best financing methods and the ramifications of business car choice on tax.

"I don't mind what people order, I just want them to be happy," continues Mike. "Making sure we get the right car and the right specification at the right price before customers order is important.

"I found one customer a very nice BMW. It was at a rate that was going to save him cash each month, but it didn't have sat nav (which he wanted) - but would have also added to the monthly costs. Knowing him well I suggested that, if we waited and got the exact car he wanted we would be looking at a monthly increase of £100 on the rental. So was the satnav really necessary? After all, I knew he used the car mainly to drive to his office or the golf club - for which there was little requirement for a satnav! He agreed, saved himself the money, and is now enjoying a very nice car indeed."

Visit over, Mike drove me back to Stoke station for my journey home. And another struggle with the intermittent mobile broadband to update a story on Business Car Manager. Bah! Next time, I'll just stick to writing on the train.

TAGS: Mike Lloyd, train

I HAD chat with John Wallace from Volvo today. John looks after Volvo's corporate sales and the dealers who sell to small businesses.

I wanted to talk to John because I thought it was fascinating how Volvo could get two large executive cars - the S80 saloon and V70 estate - under 120g/km of CO2. Which means you'll face a tax band benefit-in-kind rate of...just 13%. Wow!

"Well, you have to remember they have smaller 1.6-litre engines, but then that's the way it's going, isn't it? Engines all round are getting smaller and more efficient," John said (see our news story Volvo's executive cars break new tax ground).

It's quite clear the longer you talk to John that he's quietly pleased that Volvo has got such a story on low emissions with the company's DRIVe models." Interestingly," said John, "it's not the low spec models that customers are going for. Our SME customers are opting for SE and Lux spec. And of the DRIVe models that are ordered, 85% are with start-stop fuel-saving technology that qualify for 100% first year writing down allowance."

It hasn't just been the success of the low-emission DRIVe Volvos that has been lighting John's fire.

"Scrappage worked well for us," John explained. "We had quite a few people where the existing car was doing the job but with scrappage they took advantage of the £2000 to get a new car." The most popular model was the C30 coupe, but the scrappage exchange range went right up to the big seven-seater XC90, too - see our news story Big Volvo for small money.

The conversation wandered off to maintenance, John wondering why more small businesses didn't take up the option of maintenance. My feeling on this is that the contract hire rate is the critical figure, and at 10,000 miles a year, maintenance isn't really necessary. What's going to happen? A service or two? New set of tyres? But nothing drastic. Those items can be catered for out of the business funds without too much difficulty.

For smaller enterprises that run a larger number of company cars - perhaps 25 business cars - maintenance is more vital, especially if the cars are doing some 15 or 20,000 miles a year. Can you imagine what the effect would be on a small business's cash flow if 10 of their company cars needed new tyres all at the same time...So in these cases maintenance is worthwhile; it helps smooth the cash flow; helps budgeting; and provides peace of mind.

But back onto Volvo and the good news doesn't stop there. The new S60 saloon will go on sale late spring. "It looks a million dollars," enthused John. "The driving dynamics have been a huge focus - we've even got John Cleland, the former touring car champion, refining the chassis for the UK market."

John Cleland, incidentally, apart from being a fine touring car driver (and equally accomplished wind up merchant - ask any of his touring car rivals) is also a Volvo dealer, so he's in a perfect position to help.

"The previous S60 was successful, and we think the new car will build on that. We think it will be a viable and better value alternative to the German BMW 3-Series and Audi A4 rivals," John confidently predicted. The car certainly looks attractive - as you can see in our picture - but a serious BMW/Audi rival? Well, it's about time we had one.

TAGS: Volvo DRIVe, John Wallace, maintenance, car scrappage

A NEIGHBOUR of mine contacted me today for advice on the offer he had been made. A cash for car allowance of £4000 per annum plus 40p per mile for all business mileage; or a company Volkswagen Golf or Honda Civic.

As he's likely to be asked to travel some 500 miles per week on company business I think there's little question which way he should go: it has to be a company car.

At that mileage, the punishment on his personal car on behalf of his company would be enormous: and what would happen when his car possibly needed repair and yet he had to attend a meeting? The answer: a daily rental car - but the cost of the daily rental car would be coming out of his pocket, not the company's.

As to a Golf or a Civic as the business car. The Golf is newer, and the more complete all-rounder. You wouldn't go wrong. If you want something more futuristic, more adventurous, then the Civic sounds tempting, especially with the rocketship diesel under the bonnet.

The cash v car question is something many business car drivers face. If you're thinking about it, our experts have a very good piece in our Ask the experts section, which is well worth a look: Should I take the car or cash?. It's where I pointed my neighbour.

TAGS: cash or car, Honda Civic, VW Golf