New research by Simply Business has revealed that many small businesses will struggle to meet the HMRC deadline for submitting their tax returns.
With HMRC’s deadline of 31st January 2023 upon sole traders and those filing Self Assessment tax returns, 9% of small business survey respondents commented that they will find it difficult to pay their bill in time.
UK Small Business Concerns for 2023
The survey, which polled over 600 UK-based small business owners, highlights the challenges many face in completing their tax returns.
In this, 58% of businesses enlist the expertise of a professional accountant to handle their tax affairs, due to the complexity of completing yearly accounts in a compliant and accurate fashion.
20% of respondents went as far to say that the process for tax returns is ‘unnecessarily complicated’, with 11% of business owners in need of further support.
However, concerns around business tax returns do not exist in isolation.
31% of business owners reported uncertainty about interest rates and inflation. Moreover, ongoing geopolitical problems have led 22% of businesses to worry about supply shortages.
UK SMEs and the Cost of Living Crisis
Worryingly, as small businesses try to navigate operating in 2023, 15% of respondents couldn’t even report confidence in their organisation surviving the year.
With many businesses forecasting a decline in sales revenue – paired with falling profit margins and difficulties in devising robust plans and budgets for the year ahead – 2023 is set to entrench existing challenges and provide the perfect petri-dish for cultivating new business risks.
Alan Thomas, UK CEO at Simply Business, remarked: “The tax return season can be a really stressful period for small businesses in the UK, specifically because they don’t feel they have the necessary support from HMRC.
“As a result, many are being forced to hire external support, adding to the list of outgoings.
“Of course, it is a vital part of being self-employed, but more time spent on complicated tax returns takes away from investing time and money in their businesses.
“More guidance is needed from HMRC to make sure that the process is straightforward and as painless as possible.”
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