August 23 ,2016 | by Hari Sri

Businesses optimistic about digital tax plans, according to report

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Freelancers and micro-business owners believe that the Government’s plans to make tax digital is a step in the right direction, according to a survey conducted by FreeAgent.

The report, which surveyed 513 businesses with less than ten employees, showed that nearly half of UK businesses feel optimistic about the changes to the UK tax system.

Easier 

The new plans, which could apply to businesses from as early as 2018, will see small businesses being required to keep digital tax records and file quarterly tax returns to HMRC.

The survey showed that despite some businesses feeling positive about the changes, others feel as though they need more information about the new system, with over 40 per cent not knowing what digital tax is and 86 per cent believing that they are being kept in the dark.

Over 40 per cent of businesses feel that digital tax will make life easier, whilst 20 per cent think that it will have the opposite effect. Just 8 per cent of survey respondents said that they believe the impact of the new measures will be negative.

Changes

According to FreeAgent CEO and Founder, Ed Molyneux, many businesses still need information about tax digitisation.

“Making Tax Digital will be one of the biggest changes made to the UK tax system for generations and will start to impact businesses from as early as 2018. But it’s clear from our research that many micro-businesses still require more information about what tax digitisation actually is and how it will potentially impact them,” he said. 

Hari is the LSBF Blog's News Editor. He manages the editorial content on the blog and writes about current affairs, SME, entrepreneurship, energy, education and emerging market news.

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