Although most business owners understand the UK’s tax relief system, a recent study by Receipt Bank reveals many may be missing out on tax breaks for various items and services.
A survey of 500 small firms found that 92% were confident in their use of tax reliefs, but the subsequent figures suggest that their confidence may be misplaced. It’s an issue that appears to be affecting freelancers too.
Although the 2% of respondents who submitted tax returns claiming for underwear might have got the wrong end of the stick, almost 60% of entrepreneurs did not know they could claim for tax relief on employee pension payments or medical insurance.
Almost half (47%) have also failed to claim for staff training costs and 68% did not know they could claim expenses for periodic staff events.
Over half of those operating limited companies from their own home were also unaware they could claim back money for running costs such as utility bills, eye tests, stationery and essential hardware.
Rebecca Freeman, of digital bookkeeping app, Receipt Bank, said: “Tax breaks seem complicated, but there are a few simple rules everyone can follow.
“Read up on what you’re entitled to, particularly if you work at home or your office is based in a rural area.
“As a general rule, keep digital records of all your business expenditure – your accountant can help with the hard bits around entitlement.
“Tax breaks exist to help small businesses invest and grow; businesses that forgo their entitlements are putting themselves at a competitive disadvantage.”
Almost half of those polled believe they hadn’t made all the claims for tax relief their business is entitled to. All of your operational costs as a growing small business add up, so every little helps.
That’s why we endeavour to work with businesses across the UK to help you make sense of your available tax reliefs and eligible expenses. Thus, reducing valuable time on administration that can be spent on doing what you do best – running your business.
We’ve also teamed up with Receipt Bank to offer some highly competitive offers for use of their digital expense scanning facility, helping small firms like yours to keep track of your expenses and never lose a receipt again.
To arrange a free, initial consultation on your small business expenses and to understand more about how Receipt Bank works, call our friendly, experienced team today on 0800 0523 555. Alternatively, please don’t hesitate to drop us a line using our online enquiry form.