London businesses say schools should teach children about tax | London Daily News

Tax should be taught in schools, London’s business owners have said. More than 30% of solopreneurs and the self-employed in the capital believe the subject should be compulsory on the national curriculum. The Accountancy Partnership’s survey of more than 1,000 self-employed revealed the current state of tax knowledge among the self-employed.

Just two per cent of business owners said HMRC’s resources were ‘very effective’ in helping with their tax affairs. The majority of 28 per cent said HMRC’s resources were ‘somewhat effective’ but only three per cent said they were ‘very confident’ in their understanding of self-employment tax.

Knowing what to claim as an expense is still a mystery for a third of entrepreneurs and almost a quarter admitted they only “partially” understood how to file a tax return. Just three per cent said they were “very confident” in understanding self-employed tax and 20% said they wish they knew how to file a tax return before starting their own business.

A staggering 80% do not know what tax incentives or reliefs are available to them and 25% owners believe HMRC should communicate more clearly to young people. Almost half admitted they’re keen to learn more about tax but two-thirds said they are concerned learning more will take up too much time.

Lee Murphy, Managing Director of The Accountancy Partnership, said:

“HMRC have done little to help the self-employed understand tax, often making the topic more complicated. The pressures on the self-employed and entrepreneurs is significant and it would be hugely beneficial for them if HMRC were clearer with its help and guidance. If business owners are struggling with basic knowledge, it’s clear the authority is not doing enough to foster a culture of growth and help small businesses prosper.”

The Accountancy Partnership, which is headquartered in Wirral, has launched its own Tax Education centre to help “demystify” the subject and improve financial literacy.

Mr Murphy added:

“Last year, there was much confusion about the ‘side hustle tax’ with many believing a new tax had been introduced. In reality, there was no new tax but HMRC’s reporting rules for online marketplaces had changed. This gave us the idea to launch Tax Education, which will take our clients and those interested in learning back to school and teach how to successfully manage their tax affairs.”

“Our survey results were incredibly revealing and it’s clear there is a worrying gap in financial education, particularly regarding tax. If tax was part of the national curriculum at schools, children and youngsters would gain the knowledge to work confidently with what is believed by adults to be a complex topic.”

The government has announced the Curriculum and Assessment Review that will aim to define a ‘broader, richer, cutting-edge curriculum’, chaired by Professor Becky Francis CBE.

Speaking at the launch of the review, Education Secretary Bridget Phillipson said:

“The launch of this review is an important step in this government’s mission to break down barriers to opportunity, deliver better life chances and enable more young people to get on.”

“Our renewed curriculum, built on a foundation of high and rising standards, greater access to cultural learning and crucial work and life skills, will set up all our children to achieve and thrive in the workplace of the future, and throughout their lives.”

Earlier this year, an inquiry by the All Party Parliamentary Group on Financial Education (APPG) for Young People found that ‘confusion’ existed amongst some teachers about weather schools were required to provide financial education.

In England, financial education is included in the national curriculum for secondary schools only. In Wales, a new curriculum was rolled out in 2022 across primary and secondary schools which included elements of financial education within lessons on maths and health and wellbeing.

‘Financial capability’ is included in the national curriculum for pupils aged three to 14, through maths and numeracy lessons in Northern Ireland and Scotland.

However, the APPG’s survey of 401 primary and secondary school teachers found that over two-fifths of secondary school teachers surveyed did not know that financial education was on the current curriculum.

Feature Image by Alexa from Pixabay