Schools Need To Teach Children About Tax, Say Britain’s Entrepreneurs

Schools should add tax to the curriculum and teach children better financial literacy skills, say Britain’s entrepreneurs.

Two-thirds believe the subject should be compulsory in the classroom because it will help future generations avoid money problems in the future.

The Accountancy Partnership’s survey of 1,000 entrepreneurs also revealed some alarming statistics about the current state of tax knowledge among business owners.

Entrepreneurs also slammed HMRC for poor information about tax with 28% saying the government agency’s resources to help small businesses are just “somewhat effective”.

The survey also found 25% of business owners believe HMRC should communicate more clearly to young people and just two per cent think teaching tax is a parent’s job.

Knowing what to claim as an expense is still a mystery for a third of entrepreneurs and almost a quarter said they “partially” understood key deadlines for filing tax returns.

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% of business owners do not know what tax incentives or reliefs are available to them but there is a strong desire to know more about tax.

Almost half admitted they’re keen to learn but two-thirds of business owners said they are concerned learning more will take too much time.

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

“The survey results were incredibly revealing and it is clear there is a worrying gap in financial education, particularly regarding tax.

“It would be hugely beneficial for tax to be taught at schools and give children and youngsters the ability to demystify what is believed to be a complex topic.

“If business owners are struggling with these essential concepts, it’s clear that we’re not doing enough to foster a culture of growth and prepare the next generation.

“Schools would play a crucial role in equipping young people with the knowledge they need to navigate the financial landscape and this will lead to a more resilient economy.”

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.

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.”