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A poll of 500 self-employed and small business owners found 45 per cent ‘dread’ tax return season and put it off as long as possible. More than half (53 per cent) rated it as the most stressful period of the year and half (49 per cent) agreed their life would be a lot better if business admin was easier to sort out. Managing communication with clients, logging receipts and expenses and filing tax returns took up the most time. The research was commissioned by Virgin Money to raise awareness of the new government Making Tax Digital initiative. Simon Norman, head of business bank, said: “Doing your tax return doesn’t have to be daunting, but our research has shown it’s a real headache and many see tax admin as the biggest stress of their jobs. Government changes are on the way, so it’s important those affected by these updates are aware of what’s coming and are ready for a smooth switch to digital tax returns.” It also emerged 45 per cent of self-employed people and small business owners thought taking care of business admin was the worst part of being their own boss. And it’s led 22 per cent to consider working for someone else again so they don’t have to manage business admin. One in five (21 per cent) admitted they’d missed collecting a payment from a client due to admin overload and 16 per cent hadn’t paid a supplier due to overflowing paperwork. While 47 per cent have used their personal current account for both work and personal finances, 57 per cent don’t have any software or apps to manage it according to the OnePoll.com data. Before taking the survey, 45 per cent were unaware that from April next year sole traders earning more than £50,000 (in terms of qualifying income) will be required to switch to a digital-only tax return. With a further 63 per cent unaware they will be expected to provide quarterly updates on their earnings. Following the findings, Virgin Money is offering customers of its M Account for Business six months’ free access to accounting app Xero, HMRC recognised software to aid the transition to digital returns. The Moneyfacts five-star rated online business bank account also has no monthly fee and offers customers unlimited 0.25 per cent cashback on all debit card purchases. Simon Norman added: “With important changes coming, it’s essential self-employed people and small business owners are preparing now to get ahead of the curve, so digital- only returns don’t come as a shock. This is why we wanted to help customers along with our new offer of fee-free access to accounting software with our business bank account, to help them meet the new digital requirements without any stress. Plus, having a separate business bank account is a great way to make the process even smoother, as people don’t need to spend time separating their personal and business expenses.”
