Accounting software company FreeAgent has released a survey revealing accountants across the UK urging the new Labour government to introduce tax reforms and legislative changes to bolster support for small businesses (SMEs).
The survey included 337 accounting and bookkeeping professionals.
It indicates that more than half of the respondents, which accounts for 56.1%, consider that the government’s top priority should be lowering business taxes.
Additionally, 53% advocate for a crackdown on tax evasion and avoidance by multinational corporations.
IR35 legislation is seen as another concern, with nearly half of the professionals calling for its abolition and a further 21.7% suggesting a complete overhaul.
Accountants and bookkeepers have also recommended additional measures to support SMEs.
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By GlobalDataThese include introducing more statutory protections for the self-employed, providing more financial aid and incentives for startups, and simplifying the VAT rating system, a change desired by 55% of those surveyed, and more.
FreeAgent CEO and co-founder Roan Lavery said: “Our research shows that there are a number of key issues that accountants and bookkeepers would like to see the government addressing over the coming months.
“Many believe that their small business clients will greatly benefit from policy changes such as simplifying or lowering business taxes, reforming specific legislation such as IR35 and having more statutory protections to help them during the tough economic climate.”
Furthermore, 50.9% of the respondents are in favour of eliminating National Insurance anomalies that affect low-earning self-employed individuals.
A majority of respondents (64.8%) are doubtful that Making Tax Digital for Income Tax—part of the UK’s initiative to digitise business tax, set to launch in April 2026—will be implemented on schedule and as planned.
While 43.6% expect minor amendments to the legislation, 39.1% foresee changes or a scaling back of the original proposals.
A combined 85.8% of accountants feel confident in their practice or business’s preparedness for the next phase of Making Tax Digital.
