The Chairman of the Commons Treasury Committee, Andrew Tyrie, has welcomed HMRC’s decision to exempt the smallest businesses and landlords from new plans to make tax reporting digital, as has Mike Cherry, national chairman of the Federation of Small Businesses.
The 'Making Tax Digital' project is aimed at making tax payments more efficient by replacing the annual tax return with digital record-keeping and quarterly updates. But a petition was signed by over 100,000 people which was submitted to and debated in Parliament earlier this year. The petition entitled ‘Scrap plans forcing self employed & small business to do four tax returns yearly’ proved a success, with HMRC taking the decision to exempt small firms and the self-employed whose primary income from a business is below ￡10,000 from making quarterly returns on the digital system.
Whilst this is good news and you may think you are exempted, the limit is very low, so beware! Speak to a member of our Beavis Morgan team who will be able to review and advise on your position. We are also available to assist with all the necessary returns when they are fully introduced. Contact Steve Govey or your usual Beavis Morgan Partner.