The government has pledged to help ease the burden of tax administration for the thousands of UK businesses struggling under the mound of paperwork.

Some 85 obligations relating to dealing with forms and returns for HM Revenue and Customs (HMRC) impose 85 per cent of total costs for companies.

Revenues and Customs has announced plans to help business deal with this paperwork and another 2,607 obligations which can collectively cause irritation and frustration for the smaller number of firms they affect.

HMRC aims to reduce the burden on businesses of dealing with its forms and returns by at least ten per cent over five years and to reduce the burden of dealing with audits and inspections by ten per cent over three years and at least 15 per cent over five years.

Other plans include establishing a new burden advisory board, chaired by Teresa Graham, which will work with HMRC on dealing with the complexity of the tax system.

John Healy MP, financial secretary of the treasury, said: "HMRC will continue to work closely with business in future to further minimise administrative burdens."