New Intuit QuickBooks research reveals how UK small businesses plan to tackle the new tax year as the start date looms closer.
Nearly all (99.6%) of small businesses surveyed plan to make changes to how they operate their business in the new tax year. In fact, 41% of small businesses who plan to make changes to their business predict these will be radical.
The top five changes small businesses will make in the new tax year include:
- 52% will start using AI to make the tax year more efficient
- 50% plan to find ways to reduce tax liabilities in compliance with all laws and regulations
- 48% plan to upgrade their financial management systems
- 44% will pay closer attention to potential tax rebates
- 41% will hire an accountant or tax advisor
While 81% of small businesses surveyed say the economy is negatively affecting their business, 68% agree that the new tax year is a time to think about the changes they could make to set themselves up for success.
Indeed, 62% of small businesses surveyed are optimistic for the new tax year as it presents an opportunity to start afresh with financial management.
Businessing differently
63% of those surveyed believe that the new tax year will be make or break for their small business. 84% of small businesses plan to make cutbacks in the new tax year, with more than two in five (44%) choosing to reduce overhead costs and over a third (37%) expecting to make hiring freezes.
When evaluating the reasons for small business pessimism, at 34%, the top cause is financial or economic uncertainty preventing them from making effective plans. Furthermore, 79% are contemplating delaying their investment plans until after the general election.
New tax year resolutions
67% of small businesses agree that the run-up to the new tax year is when they most need the help of an accountant. However, only 66% currently have a qualified accountant or tax advisor to help them manage their taxes.
Pauline Green, Head of Product Compliance and Programs at Intuit QuickBooks UK, said: “ Being a busy small business owner often means taking on multiple roles in the business, and accounting isn’t always a top priority in the day to day, often meaning the paperwork gets pushed into the ‘for later’ pile.
“Adapting to economic instability this year has also been a challenge, but the new tax year presents a great opportunity for small business owners to start afresh, with solutions that might better meet their needs and do the accounting role for them, taking away the pain points and allowing them to remember why they started the business in the first place.”