Small businesses fight against digital tax proposals

  • by Carole Jordan
  • 19 Feb, 2016
Small business owners fighting against digital tax proposals

The small business sector has been fighting back against changes that will force companies to report every quarter.

The FSB and LITRG are concerned about digital tax proposals

The proposals to simplify tax reporting by calculating only sales, payroll and interest costs to determine a company’s overall tax bill, have proved unpopular among small businesses. Government plans for digital record-keeping increase the need for simplified taxes that businesses can readily understand, according to the  Federation of Small Businesses  (FSB), the body which represents owner-managed businesses and the self-employed. It said that “simplification is necessary for the digitisation of tax to be effective for HM Revenue & Customs and meaningful for smaller businesses”.

HMRC claims the new regime would be “secure, light-touch and far less burdensome than the tax returns of today”. However, the FSB has joined forces with business groups and professional bodies in warning against a mandatory regime, with the  Low Incomes Tax Reform Group (LITRG) stating that compelling small businesses to submit information digitally would make some involuntarily non-compliant.

The proposals have been submitted to an official review by the Office of Tax Simplification ahead of the March Budget.

We will keep you updated of any progress in this area. If you're at all concerned call one of our advisors on: 01273 882200.

All details above were correct at the time of publishing - for more up to date information please get in touch .

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