Making Tax Digital

Fifth of Small Business Owners Still Use ‘Shoebox Method’ to Manage Accounts

Fifth of Small Business Owners Still Use ‘Shoebox Method’ to Manage Accounts

16% of UK small businesses still use a ‘shoebox method’ to manage their accounts despite the fact all taxes will be managed online by 2020. According to research by UK200Group, just 35% of smaller firms use online accounting software to manage their accounts while nearly a fifth make no effort whatsoever to record any information prior to submitting tax returns. 23% of those surveyed hold all relevant info in manually complied reports with 27% opting for spreadsheets on their computer. Making Tax Digital Explained Worryingly for businesses still opting for the pen and paper or nothing all, government initiative Making Tax Digital will see the tax system being full digitalised. Richard McNeilly, chair of the UK200Group Digitalisation Taskforce and managing partner of Dains said: “The ‘shoeb... »

“Making Tax Digital? Haven’t Heard of It!” Say 94% of Business Owners

“Making Tax Digital? Haven’t Heard of It!” Say 94% of Business Owners

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... »

Paper-based Business Owners Have Halloween Deadline For Self-assessment

Paper-based Business Owners Have Halloween Deadline For Self-assessment

Business owners who still submit a paper tax return have been warned they only have until Monday 31 October to do so. According to research by Pandle, 89% of business owners now HMRC’s online self-assessment service – but the Halloween deadline is not to be missed by paper-based businesses. The number of penalties made against taxpayers who make ‘deliberate’ mistakes has risen from 9% to 16% in recent years, with offenders paying between 20-100% penalties in extra due tax. Self-assessment is the system used by HMRC to collect tax from self-employed people and businesses, or those who have received an income besides their regular salary. The Making Tax Digital initiative will see all taxpayers to pay and manage their taxes online, and it’s hoped this initiative will be fully implement... »

How to Manage Tax Efficiently: 5 Simple Steps

How to Manage Tax Efficiently: 5 Simple Steps

Small businesses face many challenges; however, finance can be one of the hardest to get to grips with. It can be a major distraction from the day-to-day ‘doing’, and many businesses simply don’t have time to keep abreast of ever-changing tax rules and regulations. This often results in a lack of confidence in how to manage the business in the most tax efficient way. However, a sound financial footing is the bedrock for any successful business which is why it’s crucial to have a firm understanding on matters including taxation, storage of accurate business records and regulatory compliance – right from the start. Communication with HMRC Although dealing with the tax man may seem daunting, it is crucial that you remain in contact with HMRC, and especially HMRC advice when it comes to paying... »

Small Businesses Ignorant but Blissful About Making Tax Digital

Small Businesses Ignorant but Blissful About Making Tax Digital

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... »