Small business owners in Britain are not claiming back all the expenses they incur due to running their operation, according to new research.
A poll of more than 500 company owners carried out by YouGov found that just over a quarter said they were under the impression they were claiming back every last expense, while a further 21 per cent said they claim back half or less.
The problem is that owners do not place enough value in some expenses, with 41 per cent saying they would not claim back an amount if they didn’t think it was worth their while. When times are tough like they are in the present, a variety of small figures can quickly mount up.
More than a third said they did not claim back everything because they have lost or forgotten about receipts and 13 per cent were deterred by the burden of the admin involved.
Nineteen per cent even fear being challenged over their claim by HM Revenue and Customs and 22 per cent said they were concerned they might claim the wrong amount.
“It’s clear that expenses and tax are big issues for people who run small businesses,” said Ed Molyneux, chief executive and founder of FreeAgent, commenting on the three-quarters of people who are anxious about the tax system.
As a result, many British business owners will be paying too much tax and potentially losing out on thousands of pounds that could be used to help their firm grow.
“After all, paying too much tax could have disastrous effects on the long term health of a fledgling small business,” he added.
By making use of services offering accountancy for small businesses, owners can get advice on what they can claim back and ensure they do not pay more tax than they need to. At the same time, they do not have to be concerned with carrying out the troublesome admin involved with expenses claims.