Many small businesses are unprepared for next week’s deadline for self-assessment tax returns, which impacts on business owners filing on paper as opposed to electronically.
Research by First Data Merchant Solutions shows that many small retailers don’t give enough thought to backroom processes, such as filing taxes, when they start-up.
More than four in 10 retailers said they struggled with day-to-day functions of running a business, such as tracking finances and filing information to HMRC.
Businesses are expected to file their self-assessment tax returns in paper form by Friday 31 October, although those filing electronically can wait until 31 January 2015, when tax payments are also due.
“A major issue is that many small businesses continue to rely on pen and paper or simple spreadsheets to record their accounts,” Raj Sond, general manager of First Data Merchant Solutions.
“If small businesses are to truly relieve the pressure of tax forms, they should go beyond simply filling a virtual form. By real-time tracking transactions and accounts data and even automating the process, small business owners could remove the inevitable tax deadline day dread.”More on this story