A bit of a tax relief for local businesses

Falkirk firms may be one of the 1.3 million exempt from submitting online tax updates
Falkirk firms may be one of the 1.3 million exempt from submitting online tax updates

Falkirk firm TaxAssist Accountants has good news for small businesses and landlords in the area.

They are just some of the 1.3 million businesses throughout the country that will not have to submit online tax updates every three months for the Making Tax Digital initiative due to a new digital tax reprieve.

TaxAssist owner Jonathan Deb said: “We’re delighted the Government is listening to the concerns of business owners and has announced the exclusion of a further 1.3 million small businesses and landlords from having to make quarterly updates and keep their records digitally.

“This means 2.9 million of the UK’s 5.4 million businesses will be exempt from digital quarterly reporting.”

HMRC had previously said only employees or pensioners who had profits of no more than £10,000 from a secondary income, would be exempt, but it has now included small firms and landlords with annual turnover or gross income below £10,000.

It is also considering delaying the deadline to go digital for firms with annual income over £10,000, from 2018 to 2019.

Mr Deb said: “Local business owners are already facing major new responsibilities, including workplace pension schemes and the National Living Wage. While the Making Tax Digital plans will have some advantages for small businesses, the initiative will require a huge shift in the way local business owners maintain their records and deal with HMRC.”