The following article has appeared in the Times. Making Tax Digital (MTD) will happen and if you would like to know more and to find out how this will affect your business and what you need to do about it then please contact us. We are very aware that this could be a burden but we have been working very hard to come up with a very cost effective solution. One thing that you need to be aware of is that your business books and records must be held digitally. ABI have chosen Xero as the tool to work with but we also work with Kashflow, and Quickbooks Online. These are all cloud based systems that HMRC had in mind when they decided that MTD was the way forward. At the moment HMRC say that the reasoning behind the quarterley reporting is that they will have more up to date knowledge of the level of tax revenue that they can expect for the current tax year without waiting 9 months until after the tax year end .
Small firms unaware of impending tax changes
A report commissioned by HMRC reveals widespread ignorance among small businesses about the government’s “making tax digital” proposals. Seven in ten small businesses and landlords are not aware of the impending shake-up, which will oblige them to digitise their tax records and update HMRC four times a year. The proposals affect an estimated 1.6m companies, 2.4m self-employed people and 900,000 residential landlords, and the ATT has described the apparent lack of awareness as a “serious problem”. The Ipsos Mori survey of 2,900 businesses and landlords also found a willingness to comply with the requirements among 70% of respondents. One in four firms said they would only comply under the threat of fines, and a third said they expect complying to be difficult.