IT contractors operating as small businesses are likely to find much of their time is being wasted with complex tax issues.

Small firms spend a "disproportionate" amount of time working with tax legislation, according to the former president of the Chartered Institute of Taxation Andrew Hubbard.

There are many complex rules for small business taxation - including the much-maligned IR35 - with legislation changing year-on-year and making the system unstable, Mr Hubbard explains.

As a result, IT contractors and small business owners spend too much time working out how best to structure themselves and have to neglect the business.

"We need to create stability so that someone setting up a small business knows what tax regime they are going to need for the next five years," he said.

Chancellor George Osborne recently launched the new Office of Tax Simplification, consisting of a board of tax experts who will be responsible for examining tax reliefs and small business tax legislation, including IR35.