If you run a small business you’d probably like to think that knew all there was to know about the type of tax reliefs that were available to you. Yet, as accountants we know that this isn’t necessarily the case. We suspect that many SMEs are failing to claim and make the most of the tax reliefs available. If we were in any doubt, then our suspicions have been confirmed by a recent report from Direct Line for Business, which claims that nearly half of all small businesses are failing to claim their dues.
The Direct Line for Business report found that nearly half (46 per cent) of small and medium-sized enterprises (SMEs) in the UK still have a ‘very poor’ understanding of the government tax reliefs available to them. What’s more the report found that an additional 18 per cent claim to have a ‘below average’ understanding of the business tax relief measures available. So, in total, Direct Line believes that almost two-thirds (64 per cent) of the SME community have a less than average comprehension of the available tax benefits.
Using these figures and extrapolating that evidence over the entire small business community, Direct Line believes that nearly 3.5 million small businesses across the UK are failing to recognise, and take full advantage of, the vast array of tax benefits and available government allowances that are on offer.
Speaking about the report’s findings, Nick Breton, head of Direct Line for Business, said: “This research highlights that there is a lack of awareness of the benefits available to small business owners which can ultimately impact the development and growth of their business.”
“The research shows SME owners do not know whether they are eligible for any tax relief measures, so we would encourage them to do some research and seek help if necessary to make sure they are taking full advantage of the benefits.”
So why are SMEs failing to capitalise on the benefits available? Why are they not fully claiming what they’re entitled to? Well, Emma Jones, founder, Enterprise Nation, believes it’s simply down to small businesses being focused on other priorities. She argues that as most small business owners are busy perfecting their products and services and serving customers and paying the bills, they have little time left to keep up to speed with tax efficiency measures. Consequently, she is urging small businesses to get expert advice from accountants and tax professionals:
“My advice is to find an accountant who can be your go-to person for understanding what’s best for the business from a tax and accounting perspective,” she said.
If you would like advice on all of the tax relief benefits available to your small business, then speak to Steven Glicher accountants. We can give you expert advice on the various allowances and tax reliefs available to help minimise any tax liabilities arising on earnings, profits of trade or gains when you sell on chargeable assets. For further information call Steven Glicher accountants on 0161 485 8007, or email firstname.lastname@example.org