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Entreprenuers are bad book keepers, says report

British entrepreneurs need to brush up on their accountancy skills if they are to avoid the taxman’s wrath, according to new research.

One third keep “lousy” books, and another thirty percent haven’t a clue about tax, VAT and PAYE forms, while a shocking 17 percent admitted to submitting wrong or partially-completed documents to the HRMC.

This behaviour could pose a serious risk to businesses, as if businesses are discovered to be acting unscrupulously, they could be closed down.

A spokesman for Crunch Accounting who compiled the report said: “ Britain’s entrepreneurs should be congratulated for taking such a bold step and starting out on their own.

“Yet as these figures show, many are running a very serious risk of being hung, drawn and quartered by HRMC for failing to submit correct returns.”

These statistics were compiled from information gathered from 500 business owners and senior directors aged between 18 and 60.

Shockingly, merely 22 percent felt they understood tax legislation and felt able to conduct their accounts to the required standard, and only a quarter thought their books were perfect.

The spokesman added: “The remarkable thing is that a small business need only pay £600 or less each year for quality accounting, without the hassles of paperwork.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .