The latest research from FreeAgent surveyed 337 accountants and bookkeeping professionals to highlight what measures they want the government to implement in order to help the SME sector. More than half of those surveyed (56.1%) said they believe lowering business taxes should be the government’s top priority, while 53% said it should focus on cracking down on tax evasion/avoidance by multinational businesses.

IR35 – or off-payroll legislation – was also highlighted as a concern for small business accountants and bookkeepers, with almost half (46.9%) of them calling for the abolition of the legislation and just over a fifth (21.7%) saying they believe it should be completely reformed.

Other measures recommended by accountants and bookkeepers to help the SME sector include:

• The introduction of more statutory protections for the self-employed (40.5%)
• More financial aid/incentives for people starting a business (36.9%)
• Greater pressure on banks to lend to small businesses (25.3%)
• Additional financial aid to help businesses through the cost of living crisis (20.1%)

When it comes to VAT, over half (55%) of accountants and bookkeepers said they would like to see a radical simplification of the VAT rating system. In addition, 50.9% of respondents said they would like to see the removal of National Insurance anomalies, particularly those affecting low-earning self-employed individuals.

A majority (64.8%) of those surveyed are sceptical that Making Tax Digital for Income Tax – the next phase of the UK’s drive to digitise business tax which is scheduled to come into effect in April 2026 – will be delivered on time and in its current form. Additionally, 43.6% expect the government to make minor changes to the legislation, while 39.1% anticipate more significant changes or a possible scaling back of the original proposals.

However, despite this lack of confidence over the delivery of MTD, accountants feel prepared for what’s ahead. More than half (54.7%) noted they felt somewhat confident – and a further 31.1% said they felt very confident – that their practice/business will be prepared when the next phase of MTD is implemented.

Roan Lavery, CEO and Co-Founder of FreeAgent, 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.

“The SME sector is the backbone of the UK economy and comprises millions of innovative, nimble small businesses – all of whom will play a vital role in the UK’s future economic recovery. I hope, therefore, that the new government is committed to supporting small businesses and giving them the best opportunities that they need to grow and thrive.”