Businesses may wish to consider a move to a serviced office to minimise the amount of paperwork they need to complete.

Small firms could find there are a number of complex rules in place, which change year-on-year and can distract them from their work, an expert has suggested.

The chancellor George Osborne and exchequer secretary David Gauke have recently established the Office of Tax Simplification with the focus on tax reliefs and small business tax simplification.

Andrew Hubbard, immediate past president of the Chartered Institute of Taxation, stated that small businesses and their advisors can spend a lot of time "playing around with the numbers trying to work out what the best way to structure themselves as opposed to getting on with running the business".

He added the country needs to create stability so that someone setting up a small business is aware of the tax regime they are going to need for the next five years.