Partly Cloudy

Partly Cloudy

max temp: 7°C

min temp: 5°C

Search

Small businesses in East Anglia alarmed over planned tax reporting changes, says FSB

PUBLISHED: 09:00 09 March 2016 | UPDATED: 18:11 11 March 2016

Small businesses will be required to file digitial tax returns to HM Revenue & Customs on a quarterly basis by 2020.
Photo: Joe Giddens/PA Wire

Small businesses will be required to file digitial tax returns to HM Revenue & Customs on a quarterly basis by 2020. Photo: Joe Giddens/PA Wire

Planned changes to the way in which businesses report data to the taxman are “causing consternation” among small firms in East Anglia, it has been claimed.

Chancellor George Osborne announced in December that, by 2020, small businesses and the self employed will have to keep track of their tax affairs digitally and report details to HM Revenue & Customs (HMRC) on a quarterly basis.

Salena Dawson, East Anglia regional chair for the Federation of Small Businesses (FSB), says that, in the absence of any accompanying simplification of the tax system, the proposal is “causing consternation across the small business community, especially among those who are not able to complete tax returns online”.

In a letter to the EADT, Ms Dawson says: “FSB research has shown that members already spend on average £3,600 completing their tax returns, with many still completing theirs manually.

And she continues: “Businesses are not here to serve the tax office or to have substantial administrative burdens added to the day-to-day challenges they already face.“

Ms Dawson says the FSB is concerned that HMRC has yet to publish an impact assessment of the additional burden the planned change will create.

“We have supported quarterly reporting as a tool that could be of benefit to some smaller businesses but we believe that this must be voluntary,” she adds.

“Mandatory quarterly tax reporting will not suit most small businesses and they should be free to decide for themselves what technology they want to use and how much they can afford to spend on hardware and software.”

HMRC says that most of the UK’s 5.4million businesses already manage their tax online, including 99% of all VAT returns, and that the new system due to be in place by 2020 will simplify the process, enabling information entered in a business recordkeeping app to be sent at the click of a button.

A HMRC spokesperson said: “This digitally-led modernisation integrates the different information businesses already keep into a simple, streamlined system.

“This will reduce the burden and cost to business of keeping their tax affairs up-to-date and make it for them easier to spot mistakes.”

And the spokesperson added: “An impact assessment will be published with draft legislation in line with standard practice.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

The National Heritage Centre for Horseracing and Sporting Art at Palace House in Newmarket has been shortlisted for a prestigious national award just five months after it was opened officially by The Queen.

A Suffolk woman has set herself the challenge of completing 30 physical feats before her 30th birthday to raise money for charity in memory of her mum.

Suffolk and Norfolk have lost a quarter of all mental health beds in four years - faster than the national average.

Suffolk Beaver Scouts in Ipswich help raise some sweet money for East Anglia’s Children’s Hospice using empty Smartie tubes.

An independent ambulance service used in the region has suspended offering urgent care after it was hit with a long list of issues by health inspectors, including finding bodily fluids on equipment.

As villagers in the Suffolk birthplace of John Constable consider defecting to Essex to fight 144 houses, they have been warned the grass may not be greener.

The niece of a 67-year-old man who died from severe burns after setting himself on fire in Suffolk has described him as a “loving person” who struggled to cope with a change in his benefits.

A huge crane lifted away a broken section of Ewell Bridge on the A12 at Kelvedon last week.

A vintage cinema bus, jamboree and literary festival are just some of the activities booked for a bumper programme of events coming to the Shotley peninsula this summer.

More CCTV images of potential witnesses to the murder of Dean Stansby are being released by police.

Most read

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24