‘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