‘Unclaimed Expenses’ Cost UK Small Businesses £238m Every Year
The average UK small enterprise has around £216 worth of expenses worth under £10 every year – a large proportion of which are unclaimed
£238m is being lost by UK small businesses every year due to ‘unclaimed expenses’, according to a report by FreeAgent.
The survey found that, on average, UK small enterprises have around £216 worth of expenses worth under £10 every year.
Incredibly, a significant proportion of these expenses are likely to be unclaimed as they are perceived by employees to be too ‘small’.
Ed Molyneux, CEO and co-founder of FreeAgent, said:
“Whether it’s £5 or £500, that’s all money which you can claim tax relief on, and in the case of the smaller expenses, it’s also money that quickly adds up.
“Even for a freelance business or small agency, those little expenses can end up being worth hundreds, or thousands, of pounds when they’re all combined – so it’s strange that people seem to think it’s too much hassle or not worth the effort to claim these back.
“With the new tax year upon us, it’s the perfect time for small businesses to take a look at how they manage their expenses and to start claiming back these smaller amounts – so they ensure they’re paying the correct amount of tax.”