Alongside spiralling costs, supply chain issues and dampening consumer demand, small businesses will soon have to contend with the dreaded tax return deadline.
Millions of sole traders and self-employed people will have to make sure they file their tax return by 31 January or face being fined.
For the more than 800,000 businesses launched this year, it will be the first time filing a tax return.
We speak to tax-loving comedian John Robins about his top tips for small businesses ahead of the looming tax return season.
Comedian John Robins offers his top tips to make tax return season as easy as possible
Robins, who worked as an accountant before his comedy career took off, is unlike the vast majority of self employed people in the UK in that he loves doing his tax returns.
‘I know it may sound weird but I actually love doing my tax return. It appeals to the part of my brain that likes neatness and order,’ he tells This is Money.
‘I think something that was really important when I started doing comedy to a certain extent was seeing it as a business, not just a hobby. I quit my job.
‘I got my head around the technical side of [tax], I went to a HMRC two-day course. I found in a job where an awful lot of how well it goes isn’t up to me, what I could rely on is figures to add up and facts.
‘I like a spreadsheet… It appeals to a part of my brain that is quite methodical.’
The reality for the vast majority of small business owners is far from that, however.
Research by accountancy software company Sage reveals the stress of completing tax returns is so great most business owners would prefer to clean the oven (48 per cent), stand on a plug (43 per cent), or visit the dentist (48 per cent) than file their tax return every year.
It’s not surprising. There is plenty of jargon small business owners need to sift through, and that is before having to go through their receipts for the year and fill out the lengthy online forms ahead of 31 January.
For business owners who have launched their business this year, of which there are more than 800,000, the pressure is even greater.
Andreas Georgiou, vice president of product marketing at Sage, said: ‘We’re seeing a record number of new business owners, but what we’re hearing from them is that completing tax returns and being compliant with the latest legislation can cause them some confusion and stress.’
Robins is all too familiar with the panic in the days leading up to the deadline: ‘The biggest mistake I’ve made is definitely leaving the receipts, knowing I had the figures somewhere and trying to collate it all before the deadline,’ he says.
‘The accounting department of a company don’t just come in the last 48 hours of the year. Little and often is the best way.’
The stress of tax return season isn’t just an inconvenience for business owners, it is also having a physical impact.
Sage’s survey found 11 per cent of bosses had endured panic attacks in the run-up to the deadline, while one in five battled sleepless nights and 17 per cent missed family time.
This will likely be exacerbated by the cost of living crisis and changes to the dividend allowance, which will serve to heap further pressure on SMEs.
Robins says: ‘I want to remind people, no one knows everything. There are questions I ask my accountant and he has to ask other people. People want to help you through this, you don’t need to know it all.’