Micro and small businesses, one in five in the UK, say they ‘fear’ the possibility of paying their taxes, a new study has found.
Entrepreneurs across the UK are preparing for the new fiscal and tax year, with a quarter saying they find their tax-paying experience stressful.
One in four entrepreneurs said that the main motivation for starting their own business is to help reduce their stress levels. Women, young people and new business owners are also more likely to have this ratio, with 28% of women saying they feel more pressured to pay their taxes than 19% of men.
Nearly one-fifth of entrepreneurs who took part in research for MasterCard said that having access to digital tools and consulting support would be helpful in improving their tax payment process, but many noted significant barriers to accessing digital support, including costs. Technology and its implementation; Lack of time to properly explore alternatives; Poor digital literacy; And don’t know which technology was right for their needs.
The results support the Strive UK program – designed to help UK micro and small businesses access the support and tools they need to succeed in the digital economy. Small businesses can learn more about the right tools for them using the Make A plan created by Enterprise Nation as part of Strive UK.
Natasha Jamal, vice president of MasterCard’s MasterCard Center for Inclusive Growth, said: “We know it can be difficult to stay on top of your taxes, but for many UK entrepreneurs this is a source of unnecessary stress and concern as to why they are paying taxes. Chose to set up their own business in the first place.
“More needs to be done to help these entrepreneurs navigate these challenges. That’s why we created Strive UK, partnering with like-minded companies to help businesses take full advantage of opportunities in the digital economy and reach their full potential. ”
Emma Jones, founder of CBE Enterprise Nation – a Strive UK grant – said:
“But learning the basic digital skills offered by the Strive UK program can not only accelerate this daunting task in the long run, it can lead to better all-round digital skills that can help businesses increase productivity more broadly. Profitability. “
The barometer gives a snapshot of the small business attitude, including the impact of the epidemic and their confidence for the future. Investigations have shown the full impact of the epidemic on small businesses, with almost half of their turnover reduced due to the effects of COVID-19. However, despite the last two years being challenging, small businesses in the UK remain optimistic as the new financial year enters. More than half of them said they feel positive about the future of their business and 39% plan to increase their turnover to 20% over the next five years.
In terms of digital technology, more than half (53%) of businesses say they now expect digital technology to become more important to their business success in the next five years, with nearly one-third (32%) saying new technology will be critical to future growth.
These results are based on MasterCard’s Striving to Thrive Report 2021, which reveals that the technology brings significant benefits to small businesses, such as saving time, gaining new customers and increasing revenue. Assistance in digital tool access has been cited as the biggest factor in helping businesses achieve their future revenue growth, which is estimated to reach £ 827 billion collectively over the next five years.