Small business is an important factor in the British economy and when you make it almost impossible to take on new staff (the glut of paper work, NI contributions, health & safety etc etc) combine this with a complicated tax system and with different allowances for different rates for taxpayers it all becomes so complicated that you need to hire another person just to do it all!
I don't understand why the tax system has to be so complicated, you have income tax, council tax, national insurance contributions as well as tons more "direct" & "indirect" taxes. Whilst HMRC has done a great job with their new self assesment online system it still is far to complicated, especially for those of us with small businesses.