With new regulatory changes on the horizon, many small businesses are concerned how it will impact their operations and accounting. While the majority of SMEs approve tax returns going online, those without the needed software or the latest equipment are concerned about the future.
It is expected that by 2018, digital quarterly returns will replace annual returns. This could create much more work (and cost) for SMEs that may not have the time, money or software needed to give the correct information for HMRC. So far a petition to stop these plans has collected 114,000 signatures.
Some businesses are hoping for help from the government to make the transition comfortable but as of yet, nothing has been mentioned. There have only been reports of requiring quarterly ‘updates’, which just creates more questions.
Employing accountants four times a year will of course bump up costs which could result in small businesses struggling to tread water. It is hoped HMRC will reveal the benefits of these changes and perhaps find ways to assist SMEs with their tax returns.