News that some of the smallest businesses and landlords won’t have to submit online tax updates every three months will come as a huge relief to local business owners, according to a small business accountancy specialist.
Owner of TaxAssist Accountants in Crowborough, Mark Jury commented: “We’re delighted the Government is listening to the concerns of business owners and has announced the exclusion of a further 1.3 million small businesses and landlords from having to make quarterly updates and keep their records digitally. This means 2.9 million of the UK’s 5.4 million businesses will be exempt from digital quarterly reporting.” TaxAssist Accountants Crowborough is a local business, based in Tunbridge Wells providing tax and accountancy advice and services purely to small businesses.
HMRC (HM Revenue Customs) had previously said that only employees or pensioners who had profits of no more than £10,000 from a ‘secondary income’, would be exempt, but they have now included small firms and landlords with annual turnover or gross income below £10,000. They are also considering delaying the deadline to go digital for firms with annual income over £10,000, from 2018 to 2019.
Mark continued: “Local business owners are already facing major new responsibilities including workplace pension schemes and the National Living Wage. Whilst the ‘Making Tax Digital’ plans will have some advantages for small businesses, the initiative will require a huge shift in how many local business owners maintain their records and interact with HMRC.
“The only way to update a digital tax account will be via software and HMRC has said it will not be providing a solution, so we’ll continue to work closely with our national partners such as QuickBooks Online, whose technology helps our clients to simplify processes and reduce their administration time.
“The Government’s plan to eliminate the need for an annual tax return by 2020 still stands and we want to ensure that, when the call does come for all small businesses to keep records digitally, local business owners are ready.”