UK digital businesses 'struggle with complexity of tax compliance'

09 Aug 2019

Research carried out by HMRC has revealed that UK digital businesses 'struggle with the complexity of tax requirements'.

Market research company Ipsos MORI carried out the study on behalf of HMRC, and interviewed 50 UK digital tech businesses across a range of growth stages, sizes and sectors.

According to the research, digital businesses feel that tax compliance is important, but the associated complexity means 'greater scope for error'. A handful of digital tech businesses stated that VAT and payroll taxes are the 'most difficult' parts of their tax processes. Some felt that the tax systems for these are 'not designed with digital start-ups in mind'.

Businesses felt that support offered by HMRC 'could be improved' with a better understanding of cashflow issues and the impact they have on firms' ability to comply. Many digital tech businesses called for 'greater leniency' in terms of meeting deadlines for filing and making payments, and more flexibility around firms choosing whether to pay monthly or quarterly.

In addition, the research also revealed that digital tech businesses feel that it is important to have financial support with their taxes. Some make use of specialist tax agents to apply for financial support, such as Research and Development (R&D) tax relief, the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS).

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022

Cheddar

Bath Street
Cheddar
Somerset
BS27 3AA

01934 743274


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2020 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited 52-56 Leadenhall Street, London EC3A 2EB (Policy Number: BC6210PIA194). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.