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MENDIP TIMES
More challenges ahead for many small businesses ALTHOUGH it seems the trials of the last couple of years are far from over, it appears that the next few years will present small businesses with yet more enforced administrative changes to cope with whilst many are still recovering from and rebuilding after the effects of the pandemic. Making Tax Digital (MTD) has been operating for a few years now for most businesses registered for VAT and will apply to all VAT registered businesses from April 2022. MTD for income tax and corporation tax will follow over the next couple of years. Although there have been several delays already and further postponements may yet be announced, all businesses and private landlords need to be aware of the proposed changes. The main
elements of MTD are the requirement to maintain “digital” (computerised) records and the submission of quarterly returns to HMRC in addition to the current single annual return. Businesses and landlords with a turnover below £10,000 may be exempt from the rules to begin with but for many small businesses, changes in record keeping procedures will be required and more tax submissions will be needed every year. Although still under review, some businesses may also be faced with the prospect of altering their existing accounting period end dates if plans to standardise tax periods are followed through. Whilst there are many advantages to keeping computerised accounting records, the very thought of such a change is horrifying for many business owners – perhaps even more so for those more mature in years and used to doing things a certain way.
We are assisting many clients wishing to move to MTD compliant computerised systems in preparation for the new legislation on the horizon and we would encourage all those affected to not leave their preparations to the last minute. Rod Podger Underwood Lamb
Rod can be contacted on 01275 332612 or by email rod@ulco.com
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