Small businesses win digital tax exemption from HMRC
Small businesses and self-employed will be exempted from new plans to make tax reporting digital.
Her Majesty’s Revenue and Customs yesterday unveiled six consultation documents on changes to the tax system.
It said that the decision to exempt the smallest businesses and landlords from digital record-keeping and quarterly updates follows months of engagement with business and agent groups.
Mike Cherry, national chairman of the Federation of Small Businesses, said: “The government has listened to FSB representations on behalf of small businesses up and down the UK.
“Removing small firms and the self-employed with modest turnovers altogether from the proposals will now mean that in addition to the 1.6 million small businesses and landlords that were already excluded, as a result of these changes announced, a further 1.3 million small firms and landlords will no longer be in scope.”
The Making Tax Digital project is aimed at making tax payments more efficient by replacing the annual tax return with simple, digital updates.
After the plans were originally announced, a petition titled ‘Scrap plans forcing self employed & small business to do four tax returns yearly’ was signed by more than 100,000 people and debated in Parliament in January.
Edward Troup, executive chair at HMRC, said: “Making Tax Digital represents very significant change.
“It will bring the tax system into the 21st century and help make HMRC one of the most digitally-advanced tax administrations in the world.”
He said that there was a lot of work remaining to design and develop the system in consultation with HMRC’s customers
The agency's director of digital tells PublicTechnology how the UK company register is using data science, agile methods – and eyeball tracking – in its transformation journey
Department tells select committee that goal is ‘challenging, but not out of the question’
Digital agency lays out plans for working with private companies and other departments over the next 18 months
We revisit the big news and major events from the second half of 2018
BT shows how to move from separate audio and web conferencing services to a fully integrated video, mobile, any device from anywhere meeting experience
BT's Keith Langridge leads a debate on implementing an SD-WAN which delivers on its promise, now and into the future
There’s a vast network that keeps our internet running, and it lives under the ocean
BT thinks The Internet of Things is about to undergo a revolution. Over the past two decades, we've seen IoT tech evolve from a possibility, to a novelty, to an established tool that plays a vital...