Making Tax Digital still unheard of by most business owners

With the self-assessment tax return deadline looming for the 2015/16 financial year, a new report from 1Tap Receipts has found that the vast majority of UK business owners still have no idea of the Government’s Making Tax Digital proposals.

Just one-in-20 (6%) of self-employed workers surveyed said they had heard of the government initiative, which is designed to enable business owners to pay their taxes and manage their tax details entirely online by 2020.

More than half (55%) of entrepreneurs surveyed admitted to disliking the current self-assessment regime, with more than two-fifths (45%) spending at least five hours completing their tax returns; and 22% taking more than 10 hours to file it.

Michael Wood, co-founder of 1Tap Receipts, said: “Making Tax Digital is a big, but overwhelmingly positive change as it will help self-employed people manage their finances in a much more streamlined and efficient way.

“In fact, many of them, and their accountants, are already automating various parts of the tax return process to give them a real-time view of their accounts, but without the headache of hours spent poring over a spreadsheet.”

Taxpayers who fail to submit their 2015/16 tax return ahead of the 31st January deadline risk facing an immediate £100 late filing penalty from HM Revenue & Customs (HMRC).

If you need guidance regarding your tax affairs, your local TaxAssist Accountant can work with you to see if any tax savings can be made, calculate your tax liabilities and arrange payment to allow you to concentrate fully on running your business.

For a fixed competitive price, our tax experts can address any anomalies within your tax return to minimise the risk of an HMRC investigation into your personal financial affairs.

Call us today to make an appointment on 01224 637100 or drop us a line using our online enquiry form.

Last updated: 20th January 2017