Sponsored by PublicSectorExperts.com

Hey there👋

Picture this: You started a business because you're passionate about coffee, or you're brilliant at marketing, or you saw a gap in the market.

You didn't start it to become an expert in tax codes.

Yet here you are at 11 PM, surrounded by receipts, trying to figure out why HMRC's website feels like it was written in a foreign language. Sound familiar?

The Entrepreneurship Trap

A comprehensive 17-month study just revealed something most of us already suspected: small business owners are running on empty.

The research followed 20 UK small businesses through their daily reality. What they found wasn't pretty, but it was honest.

SME owners spend their free time consuming entrepreneurship content - podcasts about "rags to riches" stories, books about scaling from nothing. This creates a powerful personal narrative: I'm the creative force. I'm the visionary. I should be able to handle everything.

The problem?

Tax doesn't feel entrepreneurial. It feels like a chore.

While business owners get energized talking about customer service, product development, or winning new clients, tax sits in what researchers called the "routine" category - necessary but emotionally flat.

The Relationship Nobody Talks About

Here's where it gets interesting.

The study compared how small businesses relate to different organizations. They found three types:

• Helpful attendants (banks, suppliers who add clear value)

• Trusted advisors (mentors, collaborators who feel like partners)

• Supervisors and sponsors (authorities who hold them accountable)

HMRC landed firmly in the third category, but with a twist. Unlike other authorities, the relationship felt uniquely unbalanced.

Business owners said:

• "We're expected to respond to HMRC much faster than they respond to us."

• "They don't trust us to be honest."

• "The guidance feels generic, not relevant to our specific situation."

Many avoid HMRC's official website entirely, preferring third-party sites that translate "accountant speak" into human language.

The Exhaustion Cycle

The most revealing finding? Small business owners operate in a near-constant state of overwhelm.

During the 17-month study, participants dealt with:

• Health conditions

• Bereavements

• Financial difficulties

• Staff turnover

• Personal crises

Several had to drop out due to illness or business closure.

Tax errors weren't about carelessness. They were about humans trying to do everything while running on fumes.

The research identified three types of error causes:

Trigger causes: Sleep deprivation, personal crises, immediate stress

Medium-term causes: Working style issues, inability to delegate

Long-term causes: Systems that don't align with HMRC requirements

The Learning Problem

Here's the kicker: when small businesses make tax errors, they don't learn from them.

The pattern goes like this:

1. Panic when HMRC contacts them

2. Scramble to fix the immediate problem

3. Return to exactly the same habits that caused the error

No reflection. No system improvements. Just relief that the crisis passed.

Meanwhile, other business challenges become learning opportunities. Staff issues lead to better hiring processes. Customer complaints improve service delivery.

But tax? Tax stays stuck in crisis mode.

What the Data Actually Shows

If you're reading this thinking, "that's exactly how I feel," you're not alone.

The research revealed that small businesses have three systems:

• "Me systems" (personal notebooks, individual processes)

• "We systems" (shared documents, team collaboration tools)

• "They systems" (HMRC requirements you have to conform to)

The disconnect between your natural way of working and what HMRC expects isn't a character flaw. It's a design problem.

The businesses that thrived had one thing in common: they stopped trying to do tax alone.

But not in the way you might think. Instead of just hiring an accountant and hoping for the best, they built systems that connected their natural workflows to tax requirements.

Where You Go From Here

Stop beating yourself up for finding taxes overwhelming. The data shows you're responding normally to an abnormal situation.

Instead, ask yourself:

• What's one tax-related task that always stresses you out?

• Could you create a simple bridge between how you naturally work and what HMRC needs?

• Who in your network actually understands both your business AND tax requirements?

The goal isn't to become a tax expert. It's to build systems that work with your brain, not against it.

Until Next Time!

Navigate Public Sector with Ease

Doing business with the UK public sector just got easier. PublicSectorExperts cuts through the complexity, providing the insights and guidance your business needs. From procurement strategies to policy advice, their network of professionals ensures you stay ahead. Plus, you’ll enjoy connecting with experts who make it simple and actionable for your success.

Quick Question!

Before you go, we’d love to know how today’s Focus resonated with you. Your feedback helps us improve each issue. 😊

New here? Welcome aboard! Join the Focus community to get insights straight in your inbox.

Need help standing out? Let us spotlight your business or service and partner with us.

Got a tip, question, or big win? We’re listening! Share it with us, and we’ll see it featured.

Looking for expert advice? Our team of public sector pros has your back, get in touch here.