“Making Tax Digital? Haven’t Heard of It!” Say 94% of Business Owners
Currently, it takes 22% of all self-employed workers at least 10 hours to complete their tax returns, with the process set to move online by 2020
94% of UK small business owners have no idea they’ll be able to pay and manage their taxes online in the coming years despite having problems with the current system, according to a report by 1Tap Receipts.
The survey of self-employed workers revealed that an overwhelming majority have never heard of the government initiative Making Tax Digital, which plans to implement a fully digital tax system by 2020.
The current system of self-declaration appears to be a significant burden for many small firm owners, as 45% of spend five hours or more completing their tax returns, while 22% spend over ten.
Not surprisingly, 55% of those surveyed say they “don’t like” submitting their tax returns.
Business owners are reminded that the tax self-assessment deadline of 31 January is vast approaching, with those tax who fail to submit their return on time facing the risk of a financial penalty.
Michael Wood, co-founder of 1Tap Receipts, said:
“Making Tax Digital is a big, but overwhelmingly positive change as it will help self -employed people manage their finances in a much more streamlined and efficient way.
“In fact, many of them, and their accountants, are already automating various parts of the tax return process to give them a real time view of their accounts, but without the headache of hours spent poring over a spreadsheet.”
Still confused about Making Tax Digital? Read our guide here.