Intuit QuickBooks has revealed that almost 100% of small businesses in the UK are planning to make significant changes in the upcoming tax year. According to a survey conducted by Intuit QuickBooks, nearly all (99.6%) of small businesses intend to modify their business operations in the new tax year, with 41% of them expecting these changes to be radical.

The top five changes that small businesses are planning to make in the new tax year include:

• 52% will start using AI to make the tax year more efficient
• 50% plan to find ways to reduce tax liabilities in compliance with all laws and regulations
• 48% plan to upgrade their financial management systems
• 44% will pay closer attention to potential tax rebates
• 41% will hire an accountant or tax advisor

Despite 81% of small businesses reporting that the economy is negatively affecting their business, 68% believe that the new tax year is an opportune time to consider making changes to position themselves for success. Additionally, 62% of small businesses are optimistic about the new tax year as it provides a chance to reset their financial management.

However, 63% of the surveyed small businesses view the new tax year as a make-or-break period for their operations. Furthermore, 84% of small businesses are planning to implement cutbacks, with 44% aiming to reduce overhead costs and 37% expecting to impose hiring freezes.

Financial and economic uncertainty is cited as the primary reason for small business pessimism, with 34% of respondents expressing concerns about the lack of effective planning due to uncertain conditions. Moreover, 79% are considering delaying their investment plans until after the general election.

As the new tax year approaches, 67% of small businesses acknowledge the importance of seeking assistance from an accountant. However, only 66% currently have a qualified accountant or tax advisor to aid them in managing their taxes.

Pauline Green, Head of Product Compliance & Programs at Intuit QuickBooks UK, emphasized the challenges faced by small business owners in managing multiple roles, with accounting often taking a back seat in the day-to-day operations. Green also highlighted the opportunity presented by the new tax year for small business owners to adopt solutions that better align with their needs and alleviate the burdens associated with accounting, allowing them to refocus on their business goals.

For more insights on navigating the new tax year and growing small businesses, Intuit QuickBooks offers a comprehensive guide.

Methodology: Intuit QuickBooks conducted an online survey to gather data for this report.