Analysis from main card funds supplier takepayments has uncovered a startling actuality: two-thirds of sole merchants within the UK are at nighttime in regards to the impending self-assessment tax return deadline, in accordance with a latest survey.
Solely 3 in 10 (31%) sole merchants have been conscious that the deadline for submitting their self-assessment kind is when the clock hits midnight on the 31 January.
General, the survey discovered that:
- 75% of enterprise homeowners have no idea at what earnings threshold they’ll have to begin paying a better tax charge of 40% (it at present stands at £50,271)
- 73% have been unaware that sole merchants will not be obligated to pay company tax
- Practically 1 in 5 (18%) of sole merchants admitted to not contributing to a pension scheme
- 21% of respondents didn’t have a three-month wage security internet saved up
Business disparities in monetary information
The survey was taken by a number of completely different sectors, and these findings have been probably the most notable:
- Retailers scored lowest, with a mere 13% possessing the correct data.
- Actual property brokers carried out under common, with solely 23% offering the proper reply.
- Legislation professionals, whereas probably the most knowledgeable among the many teams surveyed, nonetheless did not attain a excessive commonplace, with solely 42% answering accurately.
Sole merchants extra conscious of penalties than tax thresholds
Whereas the final necessities are hazy within the minds of most sole merchants, one factor they do have an excellent understanding of is the potential penalties:
- 98% of sole merchants understood there could be some type of penalty for non-payment
- 91% have been conscious of the particular penalties in the event that they didn’t pay their self-assessment tax invoice (involving penalties, curiosity prices and debt assortment procedures).
- Solely 2% thought nothing would occur in any respect.
The misunderstanding about company tax
A big 73% of respondents have been beneath the impression that they wanted to pay company tax, highlighting a widespread false impression.
In contrast to restricted firms, sole merchants are exempt from paying company tax.
Saving habits and vulnerabilities
London-based and Welsh merchants have been most certainly to pay right into a pension scheme, with 92% saying they paid contributions. The least possible was the East of England, the place solely 55% of merchants had a pension scheme.
Whereas Welsh merchants boasted the best pension contributions, they have been the worst UK area when it got here to saving: 1 in 3 (36%) didn’t have at the least 3 months’ wage saved.
Worryingly, 21% of all respondents admitted that they didn’t at present have at the least three months’ wage saved as a security internet, leaving them susceptible.
takepayments’ answer: their all-new tax calculator
In response to the analysis findings, takepayments has launched a Enterprise Tax and Nationwide Insurance coverage Calculator that’s now out there to make use of at no cost on their web site.
Jodie Wilkinson, Head of Strategic Partnerships at takepayments, emphasises the instrument’s worth, stating:
“It’s not stunning that many small enterprise homeowners are not sure of the authorized obligations they’ve relating to issues like tax and VAT. The principles could be fairly obscure, particularly in case you simply wish to deal with rising your small business.
The calculator ought to assist take a few of the guesswork out of paying tax. It’s a free instrument that anybody can use, whether or not you’re a longtime enterprise or a budding entrepreneur but to register.”
For sole merchants looking for readability on their tax obligations, you’ll be able to strive the takepayments tax calculator right here.
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