Digital tax plan lost on almost half of tiny firms

A poll set up to determine what contractors make of the government’s ‘Making Tax Digital’ plan has come back with the shock finding that almost half of them have no idea what it is.

In fact, when asked how they feel about the plan to give them a digital tax account from April 2018, some 43% of micro-businesses said that they didn’t actually know about it.

And even those that did-- just 290 out of the 513 traders polled by cloud accounting firm FreeAgent, said that more details from HMRC on how the accounts will work was needed.

In particular, only 4 per cent of the traders who knew about the Revenue’s plan felt that the department has given them enough information on how the accounts will affect their venture.

“There is still a lot of work [by HMRC] to be done” said FreeAgent boss Ed Molyneux. “I hope that we see even greater clarity over the plans in the future so that micro-business owners feel fully informed”.

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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