Baines Jewitt News
Leading accountancy firm calls on local businesses to be ready for change
One of Teesside’s largest firms of chartered accountants has warned local businesses to be prepared for major changes to the tax system, following the early general election on 8 June.
According to Stockton-based Baines Jewitt, most businesses, landlords and the self-employed, will be required to report to HM Revenue & Customs (HMRC) on a quarterly basis, via digital software, should the next Finance Bill be passed through the new Parliament.
Following the announcement of a snap general election, it was thought that policies such as ‘Making Tax Digital’ (MTD) might be scrapped. However, Trevor Cook, partner, Baines Jewitt, has warned that, although key clauses were dropped from the Finance Bill before it received Royal Assent, this is likely to be little more than a delay. He said:
“Despite things being on hold, there has been no overall change in digital policy. Whatever the outcome of the election, it appears that both sides of the house are committed in principle to a digital tax system. If this goes ahead, it will be one of the biggest changes to the tax system in a generation.
“Although there are some exemptions, it will mean a significant impact on many individuals and businesses of all sizes and sectors. There have already been concerns raised about the potential costs of putting the reporting software into place to comply with these measures. On top of this, the timetable for getting the new system up and running could be as early as 2018.
“Despite more frequent reporting requirements, it is hoped that the new digital system will be more efficient and make it easier for individuals and businesses to get their tax right. As a firm of chartered accountants, tax specialists and business advisers, we strongly advise people to keep abreast of the changes so they don’t get caught out.
For more information about Making Tax Digital and the help available, visit www.bainesjewitt.co.uk
For more information, contact Baines Jewitt on 01642 632032