This means tax is the third biggest expense for most small businesses, freelancers and contractors, behind wages and investment in stock and materials.
Creditsafe marketing director David Knowles said the findings meant small businesses were paying too much tax at a time when economic conditions were tough.
“This tax burden impacts profitability and the levels of investment that can be devoted to other aspects of the business such as expanding into new markets, marketing or employee development,” he said.
Creditsafe surveyed just over 500 small businesses as part of the research.
