#bstartup 2011 Small business owners are being pushed into a corner by HMRC’s accounting requirements, research finds.
According to a study of 50 small business owners by accounting software provider Intuit conducted at the Business Startup show 2011, two thirds (69 per cent) say the burden of Pay As You Earn (PAYE) puts them off hiring employees.
The admission comes as the deadline passed for all employers to file their PAYE end of year returns (P14/P35s). Nearly half (45 per cent) of small business employers polled say they are unaware of the deadline for late-filing.
A quarter (28 per cent) say they don’t expect to complete their return before the deadline, therefore risking being fined.
Mark Linton, a small business owner who set up events company The Business Growth Show in 2005, says, ‘I really do think that PAYE for any small business is a logistical nightmare.
‘It’s actually forcing me in my business to go the opposite way, to look at growing my business through franchise opportunities, which means that I no longer need to look to employ masses of staff because I don’t need the staff. I’m actually looking to employ businesses to take on those areas.’
Intuit UK tax analyst Diana Flier says, ‘Small business employers want to do the right thing, file accurate returns and of course avoid any penalties, but they struggle to keep on top of all HMRC’s requirements. Staying compliant can be daunting.’
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