Omitting low-cost expenses adds up to £239 million a year

According to a study from software provider ‘FreeAgent’, small businesses across the UK are losing out on a collective £239 million each year by failing to submit expense claims of less that £10.  Using a sample of 2.5 million expenses submitted by its customers, ‘FreeAgent’ found the average micro-business owner had around £216 worth of expenses with an individual value of less that £10.

Using the results of an earlier survey of web professionals where 22% said they didn’t think it was worth claiming anything costing £10 or less – the newer study projected across the UK’s estimated 5 million small business to reach it total.

Digital Tax Concerns

‘ICAEW’ carried out a recent survey in March 2016 in which it was discovered that a lot of firms in the UK are not ready for the changes to the tax system in which they will have to keep digital tax records by 2020.

A warning has been issued by the ‘ICAEW’ that a very large burden will be on businesses in 2020 as business owners will also be required to provide digital tax reports every quarter to ‘HM Revenue & Customs’ (HMRC).  From the Survey, 75% of respondents said they do not prepare their accounts using accounting software and 41% of construction and manufacturing firms rely on paper-based tax records.

Even though 55% of the firms supported the changes, only a very small 18% believe that they should be a statutory requirement.  Paul Aplin, Chairman of the ‘ICAEW’s technical committee said: ‘Businesses should be able to move to the new system over time when they are ready.  Government claims that these proposals will contribute to reducing business tax compliance costs by £400m, but we fear that many small businesses will in fact face additional costs when digital record keeping is made mandatory’.

Read more about the survey at http://bit.ly/1Th5iSM