Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Polls uncover widespread confusion about tax and pensions

14 November 2023

A survey of UK sole traders has revealed worrying gaps in the financial knowledge of many small business owners; another poll has found that most people don't know what happens to their pensions after they die.

Three-quarters of UK sole traders are unsure of the current tax thresholds that apply to them according to the findings of a new poll conducted by card payments provider takepayments.

Researchers asked sole traders "true" or "false" questions to test their knowledge of common VAT and tax principles that apply to UK businesses, as well as questions about how much they typically save or reinvest into their businesses.

The findings show that:

  • 75% of sole traders do not know at what earnings threshold they'll pay the higher tax rate of 40% (£50,271);
  • 91% aren't sure what would happen if they didn't pay their tax;
  • Only 31% of sole traders polled know the deadline for submitting their self-assessment tax form (31st January);
  • 73% of sole traders believe, incorrectly, that they need to pay corporation tax.

Which sole traders are the most informed about tax?

The research highlights significant differences in tax knowledge between sectors. Lawyers, for example, are most likely to know the higher Income tax rate threshold (53% got this right), compared to retailers (13%). When it comes to the deadline for submitting the self-assessment tax form, 42% of lawyers got this right compared to 23% of estate agents.

"It's not surprising that many small business owners are unsure of the legal obligations they have regarding things like tax and VAT. The rules can be quite difficult to understand, especially if you just want to focus on growing your business." Jodie Wilkinson, head of strategic partnerships, takepayments.

Takepayments has created a tax calculator designed to quickly give business owners an estimate of what tax they should be paying.

The survey results also suggest that money is tight for many small businesses, with 21% of respondents saying they do not currently have at least three months' salary saved as a safety net. The findings also show that 18% of sole traders don't pay into a pension scheme.

Misunderstanding about pensions

Research conducted by the Money and Pensions Service has found that more than half of UK adults with a pension don't know what happens to their pension when they die. This leaves more than 26 million pension savers unsure what would happen to their pension or who would receive it.

Just 41% of those polled correctly said that it would go to their nominated beneficiary in the event of their death. However, a fifth don't know who they've chosen to receive their pension and others incorrectly believe their remaining pensions would go to their employer (8%), the government (11%) or their pension provider (7%). Almost one in four people (23%) incorrectly believe it goes to their next of kin automatically.

Jackie Spencer, head of pensions policy, the Money and Pensions Service, said: "It's a difficult topic to think about and no one expects the worst to happen to them, but it's absolutely crucial that we make plans in case it does … We're asking everyone to do one thing and check they have the right beneficiary for each and every pension they hold. This can be done by contacting your pension provider by phone or online and it'll make all the difference if you pass away early."

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.