UK business owners turn to social media for tax advice

MoneySuperMarket has published research showing that 41% of UK business decision-makers use social media for business advice, with tax-related topics the most common area of interest.

The survey of 390 UK business decision-makers found that 31% had used social media for guidance on self-assessment or tax returns, making it the most searched topic. Business expenses that can be claimed ranked second at 24%, followed by side hustles or additional income at 21%, VAT rules or thresholds at 20%, how much tax to set aside at 15%, and business banking or cash flow at 14%.

Some business owners are also acting on advice without checking it elsewhere. While 44% said they verify information from social media with an accountant or official source, MoneySuperMarket estimated that 169,200 business owners follow social media advice without verifying it with other sources.

This has led to problems for some respondents. Nearly one in 10 decision-makers, or 8%, said they had acted on business advice from social media that they later discovered was incorrect.

Among those who said they had followed inaccurate guidance, 8% reported not setting aside enough money for tax, while 7% said they had paid more tax than expected.

Usage patterns

Use of social media for operational advice differed sharply by business size. Medium-sized businesses with 50 to 249 employees were the most frequent users, with 25% saying they very or quite often use social media to help run their business.

That compared with 6% of microbusiness owners with fewer than 10 employees, suggesting larger small and medium-sized employers are more likely than the smallest firms to use social platforms as a regular source of day-to-day business information.

Business age also appeared to influence behaviour. One in 20 decision-makers at companies trading for less than five years said they use social media very often for business advice, while the share fell to 2% among those at businesses operating for more than 35 years.

The findings highlight how far social platforms have become part of the information mix for owners and managers dealing with practical tax and finance questions. They also suggest newer businesses may be more inclined to seek informal or fast-moving online advice than long-established firms.

Alicia Hempsted, Business Insurance Expert at MoneySuperMarket, said: “Social media can be a powerful tool for useful information for business owners, however, it’s essential that decision-makers fact-check the advice with verified sources and professional government guidelines to ensure that it is correct.”

The survey focused on companies with between one and 249 employees, covering a broad range of small and medium-sized businesses across the UK. The results indicate that, for many respondents, social media is not just a marketing channel but also a source of guidance on compliance, tax and financial administration.

The prominence of self-assessment, tax returns and VAT in the responses underlines the pressure on smaller businesses to navigate complex rules with limited time and resources. At the same time, the findings show the risks of relying on unverified posts or videos when decisions can affect tax bills and cash reserves.

For advisers and official bodies, the data may reinforce concerns that business owners are increasingly encountering financial guidance in spaces not designed to check accuracy before publication. For firms, the research points to a gap between the speed and accessibility of social media information and the need for reliable professional or official advice when money is at stake.