Small businesses not claiming back all expenses

/ Posted By - Bradleys Accountants / Categories - Advice for Small Businesses

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.

Related Articles

Why are small businesses not using accounting…
| Advice for Small Businesses

All over the internet there’s advice on why businesses should switch to accounting software, particularly if they want to transition smoothly … Read more

Download: Your Budget summary report & new…
| Advice for Small Businesses

Yesterday Philip Hammond delivered the 2017 Spring Budget speech of this Government. So what exactly did the Chancellor say and, more … Read more

Spring Budget 2017 – key points for…
| Advice for Small Businesses

Today saw the unveiling of Hammond’s first – and last* – Spring Budget Statement, bringing with it as always tax changes, … Read more

X

Subscribe to the newsletter

Know about latest accountancy updates, company news and business growth tips. Every month, in your inbox

    Subscribe to our newsletter