£200 hand-out to cut firms' red tape

SMALL firms could be handed around £200 a year to help cut through the red tape surrounding their pay rolls, according to a weekend Press report.

The cash would help pay for outside accountants to complete payroll information and submit it to the Inland Revenue. Companies would be expected to submit all payroll data to the Revenue once the necessary systems were in place, the Sunday Times added.

The proposals follow a review by Patrick Carter, a member of the Public Services Productivity Panel. Its results are expected to be unveiled by Chancellor Gordon Brown alongside his pre-Budget review this week.

Businesses have complained about their increased payroll burden since Labour took office in 1997.

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