Tax Snap Highlights Major Stress Factors in Self-Assessment Returns

Survey Reveals Stress of Self-Assessment

In an alarming study conducted by Tax Snap, a mobile application designed to simplify self-assessment for freelancers, it has been revealed that approximately 82.3% of individuals who have experienced self-assessment find the process to be a significant source of stress. This makes self-assessment the most dreaded task during the year-end period, even more than traditional year-end chores like cleaning and preparing New Year’s cards. The findings indicate that self-assessment is considered a major stress event for many, pushing it to the top of a long list of holiday-related tasks.

The survey, which involved 400 respondents who had undergone self-assessment in the 2024 fiscal year, highlighted that the greatest burden stemmed from recalling the process itself. Many respondents reported that they often leave their paperwork until the last minute and frequently misplace their receipts—contributing to the stress and feelings of being overwhelmed each year. This annual routine of scrambling at the last moment signifies the psychological burden many face as the deadline approaches.

Further analysis revealed that about 50% of individuals still rely on traditional methods such as using Excel or handwritten documents to prepare their self-assessment submissions. This reliance on manual processes has led to significant economic losses, estimated at a staggering ¥188.7 billion due to the time lost in preparation.

Despite the availability of smartphone applications that can assist in the self-assessment process, only 11.8% of respondents reported having used such services. However, an encouraging statistic showed that approximately 77% expressed interest in a simplified self-assessment solution. This indicates a strong demand for more convenient support services as people are increasingly feeling the weight of the self-assessment process.

Key Insights from the Survey

1. Majority Find Self-Assessment Stressful: With 82.3% of participants reporting stress, self-assessment stands out as the number one stress-inducing event during the year-end period.
2. Challenges in Comprehension: The most significant challenge identified was the struggle to remember the procedures involved in self-assessment, a reality that reflects how many individuals feel burdened by their tax obligations.
3. Continued Use of Manual Processes: Half of the respondents still complete their self-assessment using manual methods, leading to a collective potential economic loss of approximately ¥188.7 billion.
4. Ineffective Use of Technology: Despite the technological advancements in tax submission, the uptake remains low, suggesting a gap in awareness or usability.
5. Growing Interest in Simplified Solutions: As highlighted by tax accountant Hiro, there is an increasing demand for services that can simplify tax returns, especially among freelancers and the rising population of gig workers who face unique challenges in tax compliance.

Reactions from the Field

Tax accountant Hiro has commented on these findings, noting the increasing complexity for freelancers dealing with tax submissions. As people shift towards gig and freelance work, the demand for easier solutions is becoming more pronounced. Many individuals are unfamiliar with tax processes, creating a critical gap that solutions like Tax Snap aim to fill. He notes that while professional advice can be prohibitively expensive, users are eager for user-friendly tools to help ease their strain during tax season.

The Solution: Tax Snap

Tax Snap delivers a unique approach for individual entrepreneurs and freelancers by offering a mobile app designed to simplify the self-assessment process. Using its “no effort required” philosophy, the app enables users to handle everything from everyday bookkeeping to final submission seamlessly through their smartphones. Recently ranked first among finance apps in the App Store, Tax Snap features ultra-fast processing capabilities, allowing users to categorize expenses in seconds.

The app’s tax audit risk assessment tool adds an additional layer of support, ensuring users can submit their declarations with confidence. As the economic landscape shifts, tools like Tax Snap become essential for those transitioning into freelance work, helping them navigate the complexities of self-assessment with ease.

Overall, the survey conducted by Tax Snap underscores the necessity for innovative solutions in a growing freelance economy, providing insight into the stressors faced by individuals and underlining the urgent demand for user-friendly tax services that can alleviate burdens and enhance productivity.