Recent findings reveal that 41% of businesses with 150 to 249 employees are bending tax rules, often claiming personal expenses as business-related. Tim Halford, Chief Commercial Officer at Xeinadin, stated: "Our survey highlights a concerning trend where a majority of SMEs are using loopholes." The cost-of-living crisis has exacerbated this issue, with 49% of businesses citing financial pressure as a reason for exploiting loopholes. Many business owners say they are forced to find alternative ways to save money due to over-taxation and lack of government support. While some practices are illegal, others, such as using dividend distributions, are legal methods employed to reduce tax bills.
