Facebook - Shropshire Business Twitter - Shropshire Business LinkedIn - Shropshire Business

Digital tax warning for business owners

Shropshire business owners must prepare now for new rules that will require them to handle all their tax affairs online.

That’s the warning from Marie Bramwell (pictured) at Dyke Yaxley Chartered Accountants, in Shrewsbury, who said many businesses were unaware of the making tax digital (MTD) initiative that would come into force in 2019.

“Almost 3,000 small businesses and landlords were surveyed for HM Revenue and Customs, and over 70% were unaware that they would need to submit quarterly updates from 2020 – another 13% had heard about the rules but said they knew nothing about them.

“The MTD project will mean most businesses and taxpayers will access their tax affairs completely online through digital accounts in future.

“And yet, so many businesses are still in the dark, so it’s vital that business owners act now to ensure they are ready in plenty of time.”

Mrs Bramwell said VAT-registered businesses with an annual turnover of more than £85,000 would be the first to submit quarterly reports to HMRC from April 2019.

“It’s likely that the VAT system will be tested from April this year, and as it stands, MTD for income tax and corporation tax will not be mandatory until April 2020, although the digital process for corporation tax looks likely to be delayed.”

She said the government research had also shown that some business owners were nervous about using digital technology and were reluctant to engage in the process.

“Around 26% of landlords and business owners said they already used software on smartphone apps for tax-related tasks such as record keeping and submitting returns to the taxman.

“But only 13% of landlords had used digital software to handle their tax affairs, with one in five admitting they were not confident enough to use the technology.

“It’s clear that there’s a lot of work that needs to be done to raise awareness of the new digital approach, and some businesses are taking part in ongoing MTD trials to ensure the smoothest possible transition.

“The fact that so many businesses don’t even know that MTD is on the way is a real concern, and we’ll be working hard to ensure our clients are fully informed of the process and the key dates they will need to meet.”

Century of success for accountancy firm

Customer service is key to ongoing development and growth

27th November 2019

Beware using personal savings to fund venture

SME owners should try and stay protected, says expert

30th January 2018

Unexpected Christmas gift

Bonuses may qualify for exemption

14th December 2017

Telford IT company sold in multi-million pound deal

Local firms play key role in Rockford IT deal

3rd November 2017

Pensions deadline looming

Employers must auto-enrol staff, advises accountant

2nd June 2017

Elderly workers want to stay on

Benefits for employers of experienced workers, says accountant

6th March 2017

Second helpings of club breakfast

Breakfast Club to help solicitors with tax planning

11th November 2016

Sweet tooth pays off for charity

Fundraiser leaves sweet taste for accountants

22nd November 2016

Guests stump up cash for charity

Well known cricketers guests of honour at fundraiser

4th December 2016

Accountants back netball team

Robins sport new kit thanks to Dyke Yaxley sponsorship

17th February 2017

Laura joins accountants' corporate team

New recruit welcomed at Dyke Yaxley

26th February 2018

County accountancy firm in expansion move

Dyke Yaxley announces acquisition of Gorman Evans

2nd October 2017

Limited window for tax relief claims

Shropshire businesses urged to seize opportunity

19th September 2017

Kick-start for charity appeal

Staff from Dyke Yaxley support cancer charity campaign

8th September 2017

VAT changes could leave businesses worse off

New flat rate scheme to hit smaller firms

4th May 2017