Britain's small IT businesses are struggling to understand the country's complex tax legislation, according to new research.
Conducted by business insurance specialists Hiscox, a survey of more than 1,000 small and medium-sized enterprises (SMEs) revealed that 27 per cent of small businesses struggle to deal with the tax, finance and accounting processes required of them.
The study also revealed that, of those businesses that do struggle, 76 per cent are classed as working within the IT and tech business.
According to the results of the survey, small businesses struggle most with tax legislation, with 59 per cent of respondents citing it as their biggest problem. This equates to over 850,000 small businesses across the country, Hiscox added.
Businesses were also concerned with other areas of financial and business legislation, with 50 per cent stating that bookkeeping and accounting were an issue, while 45 per cent struggled with payroll and tax returns.
Commenting on the areas of concern, business leaders within the IT sector stated that they need further support from the government when it comes to tax reliefs and incentives.
Additionally, respondents to the Hiscox survey requested more information from government authorities on how they can efficiently manage tax, particularly if they plan to grow their business internationally.