Small Businesses Ignorant but Blissful About Making Tax Digital
Just 8% of freelancers and micro business owners feel the new government initiative to digitalise tax returns will have a negative impact
Small business owners remain optimistic about the new government initiative Making Tax Digital, despite not really understanding what’s going to happen, according to a report from FreeAgent.
The survey of 513 freelancers and micro business owners revealed that 45% of respondents believe the digitisation of tax will make their life easier in contrast to just 20% who think it won’t and 8% who believe its effects will be wholly negative.
However, the positive outlook appears to have little basis in actual reality as a whopping 86% of those surveyed admit they haven’t received enough information about the changes, with 43% admitting they don’t even know what digital tax is.
Ed Molyneux, CEO and co-founder of FreeAgent, said:
“Making Tax Digital will be one of the biggest changes made to the UK tax system for generations and will start to impact businesses from as early as 2018. But it’s clear from our research that many micro-businesses still require more information about what tax digitisation actually is and how it will potentially impact them.”