Many small to medium sized enterprises have been concerned since George Osborne indicated in his 2015 Autumn Statement that self-employed taxpayers and SMEs may be required to submit quarterly returns in the future. Soon after the Chancellor’s announcement, an online petition was created by UK small business owner Paul Johnson to tackle the possibility of enforced quarterly tax returns by the HMRC.
There are fears that small businesses throughout the country would suffer from additional red tape and substantial fees if the rule is introduced. Many small business owners have voiced their support; the petition has received more than 104,000 signatures so far and is soon to be debated in parliament. However, UK200Group, the leading quality assured membership association of independent accountants and lawyers, has responded to the petition by moving to quash fears that the HMRC will enforce the new rule.
Despite having 18 days to officially respond to the petition, a statement has been released by a spokesperson stating that there will be no need for SMEs to submit returns four times a year. They also explained that quarterly updates will eventually be introduced for some taxpayers by 2018, with the rule being completely phased in by 2020. The move aims to tackle the amount of unpaid tax resulting from mistakes when filing tax returns. The Government department claims that this amount stands at £6.5 billion.
The support of our professional accountants in Brent can help your business remain tax efficient and ensure that your legal obligations are met. We focus on making sure our clients meet every requirement whilst paying the minimum amount of tax possible. We specialise in making sure you benefit from the range of allowances and reliefs that can reduce your tax liabilities.
With vast experience and knowledge of UK tax legislation, we offer every client an equally dedicated service and it is our role to help you enjoy maximum tax savings. If you are a newly established SME, about to launch your business or you need professional tax advice and support, we offer a free consultation without obligation.