More than 600,000 of Britain's small business bosses have suffered panic attacks due to the stress of trying to complete their tax returns, new research from Sage suggests. The poll found more than one in 10 bosses (11%) endured the attacks while one in five (20%) battle sleepless nights and 17% miss family time.
The research by accountancy tech leaders Sage involved more than 1,000 small business owners, and also shows they are being caught out by tax jargon. Nearly half (42%) said they wouldn’t be able to explain MTD (Making Tax Digital) or ITSA (Income Tax Self-Assessment) (44%) to somebody else, while almost one in five (18%) would struggle to define PAYE (Pay As You Earn) and the difference between minimum wage and living wage (22%).
Government figures show there are currently 5.5 million small businesses in the UK. The number of new businesses created last year surged to a record high of 810,316, suggesting many bosses due to file returns in January will be doing so for the first time, while established businesses are having to get to grips with the switch to Making Tax Digital.
Now comedian, podcaster and BBC Radio 5 Live presenter John Robins has partnered with Sage to help SMB bosses untangle the stress of tax returns. Together they have launched a new tax jargon buster It breaks down common tax-related terms in easy-to-understand language to help small business owners get a handle on their taxes ahead of the January tax return deadline.
John said: “I know it may sound weird but I actually love doing my tax return. It appeals to the part of my brain that likes neatness and order. But as the Sage research shows, many bosses are finding tax returns so confusing and stressful it is harming their health..
“That’s why I’ve created this guide with Sage to translate the complicated jargon, reassure them there's plenty of help available, and show that if you find the admin of keeping your tax accounts stressful, investing in a good accountant and state of the art accounting software will be the best investment you ever make.”
The Sage research also revealed the stress of completing tax returns is so great most bosses would rather clean the oven (48%), stand on a plug (43%) or visit the dentist (48%) than file their tax return.
Andreas Georgiou, VP Product Marketing, Sage, said: “We’re seeing a record number of new business owners but what we’re hearing from them is that completing tax returns and being compliant with the latest legislation can cause them some confusion and stress.
“We’re working with John Robins to take the stress out of doing your finances, making it easier to understand key jargon and to understand the benefits of going digital when it comes to your business’ accounting.”
