Just 35% of UK adults are confident they could complete the self assessment tax return form correctly, according to research by Standard Life.

Three in ten UK adults admit they do not feel confident they could complete the form correctly. A further 18% said they felt neither confident nor unconfident while 17% were not sure.

The research highlighted a widespread lack of awareness around self assessment timings, with more than half not knowing when the deadline for filing is.

In addition, among those who are currently, or soon will be, in the higher income tax bracket, 41% are unaware that they might need to fill in a self assessment tax return to claim all their pension tax relief.

Dean Butler, Managing Director for Retail Direct at Standard Life, said:

‘The deadline for filing self assessment tax returns is fast approaching, with returns needing to be submitted online by midnight on 31 January. So, if you’re one of the categories of people who needs to send a tax return then now is the time to act.

‘Tax returns can be tempting to put off, but it’s important to understand what’s required and file it on time to avoid any penalties which can be costly. Tackling the forms in advance, rather than leaving it to the last minute, will give you the time to gather the information needed and make the submission as stress free as possible.’

Internet link: Standard Life website

Artificial intelligence (AI) will affect almost 40% of all jobs around the world and deepen inequality, the International Monetary Fund (IMF) has warned.

In a new analysis, IMF researchers examined the potential impact of AI on the global labour market. It found that, in advanced economies, around 60% of jobs may be impacted by AI. In contrast, in emerging markets, exposure to AI is expected to affect 40% of jobs.

The IMF also suggested that AI could affect income and wealth inequality within countries. Workers able to make effective use of AI may see an increase in their wages and productivity, whilst those who cannot risk falling behind.

The IMF says policymakers should review the rise of AI in the workplace in order to prevent it from stoking social tensions. It has called for a careful balance of policies to tap into AI’s potential.

Kristalina Georgieva, Managing Director at the IMF, said:

‘In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions.

‘It is crucial for countries to establish comprehensive social safety nets and offer retaining programmes for vulnerable workers. In doing so, we can make the AI transition more inclusive, protecting livelihoods and curbing inequality.’

Internet links: IMF website

Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed (IPSE).

IPSE’s research found that the number of self-employed business owners aged 50 and over increased to 1.1 million in 2023 – 89,000 more than in 2020.

In the same period the total solo self-employed population fell by 154,000.

Additionally, of those aged 50 and over in self-employment, as many as one in six launched their businesses within the past three years.

IPSE’s Director of Policy, Andy Chamberlain, said:

‘It’s clear that self-employment’s offer of independence and autonomy in work are particularly attractive to experienced professionals, especially if they have lost an employed role or have become disillusioned with the nine-to-five.

‘Many harbour dreams of starting their own business, whether it’s to pursue a lifelong dream, increase their income or find a better work-life balance.

‘But the over 50s, now in the prime of their careers and with decades of experience under their belt, likely have even more confidence in their ability to make a success of it.’

Internet link: IPSE website

The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC).

The first phase of the UK’s Border Target Operating Model began on 31 January, with imports of plant and animal products now requiring export health certificates.

It is the first time for decades that EU firms will have to provide this documentation for goods they are sending to Great Britain. The BCC says it is unclear how prepared they are for the change.

The business group says there is more concern over a lack of clarity around physical checks of consignments, due to start in April.

Government figures show the UK imports just under 30% of all the food it consumes from the EU.

William Bain, Head of Trade Policy at the BCC, said:

‘The government is finally implementing major changes to Great Britain’s inbound border controls and customs checks stemming from Brexit, but there are still unanswered questions around its plans.

‘Especially, as businesses are already facing a tough start to the year, with container shipping prices quadrupling as the Red Sea disruption continues.

‘The initial changes … should not cause many noticeable hold ups for inbound goods, although EU firms will be facing new charges to get export health certificates and will need to find vets to sign them.

‘The bigger issue is physical checks on a proportion of these imports, which are due to start in April.’

Internet link: BCC website

The government should raise the turnover threshold for VAT from £85,000 to £100,000, according to the Federation of Small Businesses (FSB).

The business group said that this would give firms stepping into the VAT-paying ring crucial breathing space. It would also be an incentive to grow their turnover without fear of having to charge customers an extra 20% overnight, the FSB added.

The FSB also suggested bringing in a smoothing mechanism to ease the transition for small firms, owner-managed companies and some of the self-employed who go just over the threshold.

At the moment, thousands of small firms keep their turnover just below the £85,000 threshold, according to the Office for Budget Responsibility (OBR).

The OBR said that hundreds of millions of pounds of potential economic activity could be lost due to this ‘bunching’ just below the threshold.

Tina McKenzie, FSB’s Policy Chair, said:

‘VAT compliance flattens small firms by stifling their growth and emptying their coffers. It’s crying out for a modern makeover to match today’s economic landscape.

‘We can’t let it squash the ambitions of small businesses, strivers, and budding entrepreneurs.

‘The flaws in our current system are glaringly obvious. We are at a breaking point – a drastic overhaul of VAT is needed.

‘Raising the threshold to reflect inflation, introducing a buffer to soften the blow for those just over the limit and demystifying the rules to save small business owners from a VAT-induced headache could unlock hundreds of millions in extra economic activity.’

Internet link: FSB website