The cost to Sussex's small businesses of putting new legislation into practice has more than doubled in the past year.

A report from the Institute of Chartered Accountants (ICA) shows regulation is considered the most serious barrier to growth for the county's small businesses.

The ICA says the cost of red tape now amounts to between four and six per cent of turnover for smaller businesses.The annual cost to businesses with ten staff or fewer has jumped from £1,700 to £3,600.

For businesses employing up to 50 staff, it has risen from less than £5,000 to more than £8,000. Even sole traders face costs of about £1,000 a year.

Forty-three per cent of advisors to the smallest businesses and 40 per cent of advisors to sole traders said compliance diverted resources and time away from essential business planning.

The results suggested smaller businesses risked accidental non-compliance because they lacked the knowledge and resources to handle the volume and complexity of regulations. This was compounded by the frequency of changes.

Bob Curtis, who runs a photographic studio in Brighton and employs one full-time member of staff, said the time involved in filling in forms and working out whether new legislation applied to his businesses was excessive.

He said: "I often find that things like PAYE change so frequently I have filled the form in wrongly because I have not understood or even got round to reading the latest piece of legislation that has come in.

"Every time the Chancellor makes a change to the tax bands it results in a lot of work for small companies.

"Although they do publish an idiot's guide on the new rules, you can never be sure what should be thrown away from the previous year.

"Working out the PAYE alone takes more than one day of my time every year. VAT is comparatively straightforward because I have the right software and it is done on the computer.

"But, added up over the year the amount of time involved comes to at least one day. I am trying to run a small business and make a living but I feel burocracy, rules and regulations are holding me back.

"Whitehall makes the rules but I have to work a long hard day to implement them."

Accountant Trevor Freeman, of Brighton-based TR Freeman, said the Department of Trade and Industry had been charged with reducing the amount of red tape facing businesses but he had yet to see any difference.

He said: "Unfortunately, legislation introduced subsequent to the announcement that there would be less red tape has in fact resulted in more.

"A classic example is tax credits. Under the old system an individual made a claim for an allowance to the benefits agency and received a payment from them but now the employer has to make the payment and if the deductions from an employees pay come to less than the payment, the employer has to apply for a refund.

"Now these payments have to reviewed every six months and for two weeks between the end of the old claim and the start of the new claim the payment is made directly by the agency. I can't see who is benefitting from the system.

"That is just one example in one area, there are new regualtions covering health and safety, planning and pensions, the list goes on.

"I now advise people who say they want to start their own business to think twice about it because legislation and red tape hold you back at every turn and add to the stress and worry."

According to the ICA, the constantly changing regulations are stifling the growth of businesses at an early stage. Newer businesses are often reluctant to take on staff because of the weight and complexity of employment legislation and the risk of legal action by current and former employees.

Frank Pyne, the Institutes enterprise liaison officer for the Sussex, said: "Red tape's stranglehold continues unabated. Not only does the volume and complexity of regulation eat into the resources small businesses, but it also absorbs far too much time that could be spent more valuably on survival and expansion.

"Small businesses are a vital engine of innovation and growth. They need support from government and other agencies to cope with the challenges they face."

The ICA's research shows the Government's Small Business Service needs to raise its profile.

Mr Pyne said: "The Small Business Service is the latest in a long line of government initiatives designed to support smaller businesses. It will have to deliver on its promise of easing the regulatory burden to be considered a success.

"Business advisers are clear what they want from the SBS. They expect a review of existing legislation affecting small business and action in the form of lobbying for exemptions and simple guidelines.

"They expect an improvement in government understanding of small business and better consultation."