Paying your taxes is set to become far less burdensome for British businesses, with HMRC’s plans to bring the current tax system into the 21st century.
Described as a ‘digital revolution’ to cut red tape for SMEs, the Making Tax Digital programme will benefit millions of businesses. Yet with nearly half (43 per cent) of micro-business owners and freelancers unaware of the digitalisation plans, it’s crucial that taxpayers get to grips with the changes.
Under the reforms, the tax system should become more streamlined and efficient by displaying data held with HMRC in a personalised digital account. This will be in real time, giving businesses and individual’s greater certainty over tax bills without having to wait until the end of the year to see how much is owed and getting caught out with a hefty tax bill.
Set to be become fully operational by 2020, the changes will also require companies to submit quarterly tax returns. Yet the Government has recognised the burden that this would place on smaller firms and has therefore announced that 1.3 million businesses will be exempt from this reporting requirement.
Digitising our services and operations is at the heart of the Champion Group and remaining at the forefront of technology means that we’re already well equipped to meet the new requirements on behalf of our clients.
To see how your business might be affected, contact Gill.Molloy@championgroup.co.uk or call 0161 703 2500.