Millions in Tax Relief Missed out by Small Companies

Posted on 14 April, 2016 by Chris Grigorovsky

A new study by FreeAgent has found that around £250 million of expenses every year are not being claimed by UK micro-business owners, saying the amounts are too small or time consuming to put into their accounts.

Expenditures

An aggregated sample of 2.5 million expenses with a total of £168 million was logged in by customers in FreeAgent throughout 2015, and it revealed that the average micro-business owner has around £216 worth of expenses, with individual values of £10 or less every year.

A recent survey of 100 web professionals showed that 22% of respondents thought it wasn’t worth claiming any expense that cost £10 or less. Across the 5 million micro-businesses, this equates to approximately £238 million in unclaimed small expenses.

CEO and co-founder of FreeAgent, Ed Molyneux, commented: “Whether it’s £5 or £500, that’s all money which you can claim tax relief on, and in the case of the smaller expenses, it’s also money that quickly adds up.

“We found that nearly one in four micro-business owners wouldn’t claim expenses worth £10 or less, presumably because they’re too small to bother with or it takes too much time to log them, and that suggests hundreds of millions of pounds are gong unclaimed across the whole of the UK.”

Additionally, 39% of those surveyed said they claim all expenses back incurred for their business while 5% say they don’t claim any expenses back whatsoever.




Leave a Reply


Recent Posts

Britishsteel Getty Images

British Steel on the verge of collapse with over 20,000 jobs at risk

Notre Dame de Paris

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams 2018

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel_Macron

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market

Oxford_Street_Selfridges_Christmas_Decorations_2017

Creative Christmas window displays

Toronto downtown skyscrapers

Brief history of skyscrapers

Savvy promotions attract early Christmas sales for retailers

Are savvy promotions attracting Christmas sales for retail stores?

Greenfield developments

Greenfield developments: The facts

facts about converting chapels churches

Things to consider when investing in church or chapel conversions

Lincoln Castle 1068

Exploring Lincoln Castle’s Georgian and Victorian Prison

the leopard inn Burslem

Facts about The Leopard Inn, Stoke-on-Trent

ancient high house Stafford

The majestic Ancient High House in Stafford

retro video game arcades

Retro video game arcades: The comeback

industrial style offices

How to achieve an industrial inspired office

When to decide if a building should be demolished

When old buildings should be demolished