The accountancy group, UK200Group, have spoken out over Her Majesty’s Revenue & Customs ‘Making Tax Digital’ plans, as they are concerned that some businesses will find it difficult to cope with the amount of information it will have to process under the new scheme.
The Group are worried that it will put undue stress and pressure on companies who have to implement the scheme and use the new software, and that this could become a burden they could well do without as they also have to come to terms with Brexit and all the changes this will entail.
There will be new day to day reporting requirements for some businesses which are bound to take up more time and manpower and there is a concern that this could harm productivity which would be the opposite of what the scheme was introduced to do. So although the Group sees the benefits of making the tax processes digital it believes that more consultation is required to knock the plans into shape so that they will be easier to implement for all concerned.
Andrew Jackson, who is head of tax at the UK200Group said: “I think what they’ve failed to identify is that business people aren’t doing it now because of the cost of implementing an accounting system.
“This isn’t just financial, but includes the time and effort spent learning how to use it and keeping it up to date.”
And he also went on to say that it was the smaller companies who will find it more of an issue, as the cost of setting up the new digital tax system will be the same whatever the turnover of the business. And learning the skills required to use it will take time that could be used on other areas of their business.
You can read more about this story by going to the Brookson website at the following link: Implementing `Making Tax Digital Plans` A Concern For Businesses
If you require any help with any tax issues, or any other financial issues regarding your business, please contact WHR Accountants on 028 3752 2909, and we will be glad to have a chat with you.