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Making tax digital

It’s fair to say that the government’s making tax digital initiative hasn’t always received a good press. Dismayed by the thought of having to effectively submit four online tax returns each year, more than 100,000 small business owners and their accountants signed an online petition which resulted in a parliamentary debate in January of this year.

At the time the government confirmed that quarterly tax returns would not be required with exemptions being in place for the smaller business. Now HMRC have issued six consultations, aimed at moving the digital taxation debate forward. Alongside an expansion of the cash-based accounting method of calculating tax, the consultations look towards measures which are aimed at simplifying administration and streamlining digital accounting.

HMRC say that these measures would enable a 2.9 million small businesses and landlords to benefit from the making tax digital initiative without the need for quarterly returns or having to keep records in a set digital format. Commenting on the consultations the Executive Chair of HMRC, Edward Troup, said “There is still a lot to design and develop, and it’s important that we do this hand-in-hand with our customers and their representatives; these consultations are the next step in this process.”

If you would like to speak to a tax adviser about efficient tax planning, please contact Newshams Tax Advisers on 0203 151 0650 or email us at enquiries@newshams.com.

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