This article tries to bridge together the analysis of political misperceptions and direct democracy by analyzing the 2016 Brexit referendum.There has been a lot of literature concerning political misperceptions and the effect they have on voting behavior. Furthermore, a number of studies have sought to understand how they are formed, what kind of people process and use them, and whether they can be corrected. There has also been extensive literature on direct democracy and how voters make decisions on the ballot. A great part of this literature has revolved around voter political sophistication. Thus, there is an ongoing debate in the academic community about the implications of direct democracy. However, there is very little research related to the conditions under which misperceptions take place in referendum campaigns and how they affect voting behavior. Through the quantitative analysis of the British Election Study combined Wave 1-14 Internet Panel, we establish an important misperception that took place during the Brexit Referendum campaign and what variables influenced its use among British voters. Once this is done, I analyze the effect the misperception had on the final outcome of the Brexit referendum vote.