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Quarterly reports

19 January 2016
Issue: 4534 / Categories: News

New quarterly digital tax accounts may cause problems for small businesses.

The introduction of quarterly digital tax accounts for small businesses and self-employed people is to be debated in the House of Commons on 25 January. This is as a result of the epetition against it obtaining more than 100,000 signatures.

The Low Incomes Tax Reform Group (LITRG) cautions that compelling small businesses to submit information digitally will result in previously compliant taxpayers becoming involuntarily non-compliant because they cannot satisfy the new obligations.

Anthony Thomas, LITRG chairman, said: “Companies that do not already use record-keeping software, or are using software that will be incompatible with HMRC’s digital accounts, will have to spend a lot of time transposing their business records on to new systems to satisfy HMRC.”

He said HMRC should develop software that is so convenient and easy to operate that people will choose to use it, as many do with online self-assessment filing.

Issue: 4534 / Categories: News
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