In last year’s Autumn Statement, the Chancellor George Osborne revealed the Government’s plans to digitalise HMRC services by 2020. As part of the reforms, small businesses and self-employed individuals will be required to submit quarterly tax data online. Since the announcement, an official petition has been set up and has gathered over 100,000 signatures in an attempt to block the changes.
Whilst the plans to digitalise HMRC services have on the whole have been praised, some believe it will cause problems for businesses run by non-computer literate owners or those who shun more “sophisticated” tax recording methods. Also, most small business owners spend all their time running their business and don’t really want to spend too much of it compiling information to send to HMRC.
As with almost all petitions gaining over 100,000 signatures, the matter will now go before Parliament on 25 January.
If you are a small business owner or are self-employed, what are your thoughts on the digitalisation of HMRC services? Do you think submitting quarterly data is a blessing or curse? What effect will this have on your business? We’d love to hear from you! Share your thoughts in the comment section below or get in touch with our tax team on Twitter – @pmm_tax.
For further information, you can read a more detailed summary on Accountancy Age here.