Plans by HM Revenue and Customs (HMRC) to shut down a number of tax offices could adversely affect smaller businesses, it has been claimed.

The Forum of Private Business (FPB) said a cost-cutting exercise by HMRC, which could see 3,000 jobs go along with some local tax offices, may mean delays in handling the administration of the taxation system.

Tax can be a major headache for small businesses, the FPB said, and cutting jobs and tax offices will only add to the confusion and frustration felt by many entrepreneurs when they are filling out their tax forms.

Matt Goodman, the FPB’s policy representative, commented: “While we can all applaud the cost-cutting exercise, HMRC will need to be careful that the reduction of staff, in particular, does not affect the service offered to smaller businesses. The demands of running a small business are enough without waiting weeks for your tax papers to make it to the top of the pile.”