Confusion around VAT and wider business terminology is increasing as companies move towards the 7 August filing deadline, according to new research from Hiscox.
The findings indicate a growing number of people are going online to seek help in understanding the tax and other business terms.
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Hiscox surveyed 350 business owners and directors in the UK to examine how they engage with business language.
More than half (52%) of respondents said they do not feel confident in their understanding of common terms and acronyms.
When confronted with terminology they do not recognise, 69% of business owners said they first turn to search engines such as Google for clarification.
Social media is also being used as an educational tool, with 16% of respondents using platforms such as TikTok and LinkedIn for short-form explanations. This figure increases to 31% among those under 30.
On TikTok alone, more than 1.5 million videos sit under the #businesstips hashtag. Alongside this, 15% of business owners reported using AI tools such as ChatGPT and Perplexity to help interpret unfamiliar concepts.
Hiscox direct and partnerships director Nick Thornhill said: “AI tools can help to provide quick explanations, but they are not always consistent with how information is sourced or explained.
“As these tools are becoming more widely used in day-to-day business decision-making, it becomes increasingly important that business owners cross-check their understanding, especially when terminology feeds into financial, operational or compliance decisions.”
Away from search engines, social media and AI, business owners also seek support from online courses (13%), books (12%), community forums (11%) and business coaches (11%) to build their understanding.
The survey was combined with analysis of more than 500 business phrases and abbreviations to identify those most frequently searched.
In response to the results, Hiscox has also developed an interactive quiz to allow business owners to test their knowledge of regularly used acronyms.
Analysis of the search data shows key performance indicator (KPI) is the UK’s most searched business acronym with 60,800 monthly queries. Data shows a strong focus on workplace culture and data compliance, with DEI (45,590), GDPR (43,480) and CRM (42,800) following closely.
Financial and technology terms round out the top tier, led by EBITDA (33,200), SaaS (25,200), SEO (24,300), ERP (19,800), API (18,500) and VAT (17,500).
The research also explores how unfamiliar language affects business owners emotionally. Respondents described feeling frustrated (16%), intimidated (13%) and overwhelmed (12%) when they come across terms they do not understand.
