Business believe the UK tax system is fundamentally unfair and want more support to stay compliant, according to new research.

In a survey of more than 1,000 firms, the British Chambers of Commerce found nearly three-fifths (58%) of respondents think the UK tax regime is unfair to businesses like theirs.

The findings largely signal concerns over how HMRC applies the tax rules to different types of firms.

Two-thirds (67%) of respondents don’t believe that HMRC applies tax rules fairly across all sizes of business. Micro firms are more likely to have that view (70%) compared to their medium and large counterparts (59%).

Some 64% of companies disagree that HMRC applies tax rules fairly regardless of where the company is domiciled. Again, there is a difference in perception among small and larger firms (67% micro firms versus 59% medium and large).

The results also found concerns over the quality of service provided by HMRC. One in two (49%) firms don’t believe HMRC provides the support they need to be compliant. This figure is higher for micro firms (51%), compared to medium and larger firms (42%).

Many respondents expressed frustration that HMRC underestimated the time and money their small businesses spent trying to keep pace with regulatory burdens and the complexities of the system.

Jo James, chief executive of the Kent Invicta Chamber of Commerce, said: "Businesses across the county who took part in the survey, irrespective of size or sector, expressed some concern, particularly in the levels of service.

"Business is too often seen as a burden and not the mechanism for producing the country's wealth.

"Small businesses were particularly concerned with the introduction of Making Tax Digital and the added burden this was going to place upon them."

Suren Thiru, head of economics at the British Chambers of Commerce, added: “These results reflect a strong impression among businesses that the current UK tax regime isn’t a level playing field.

“When it comes to compliance there is a tendency for HMRC to see smaller businesses as low hanging fruit and as a consequence they feel under the constant threat of being called out for getting things wrong in a tax system that has grown ever more complex. In contrast, action to tackle persistent compliance issues among a small minority of firms remains frustratingly slow.

Business is too often seen as a burden and not the mechanism for producing the country's wealth

“There is also widespread disappointment over the escalating burden of up-front taxes and costs of doing business in the UK, particularly at this time of heightened uncertainty. This has proved to be tipping point for many smaller firms who typically operate on a tight cashflow.

“HMRC must step up efforts to provide better support to smaller businesses to get their tax right, rather than simply pursuing and enforcing penalties."