New tax plan a threat to businesses

UK Government's proposed online quarterly tax reporting system could have major implications for Western Isles crofters and others.

By The Newsroom
Saturday, 23rd July 2016, 7:07 am

The Federation of Small Businesses (FSB) revealed that their latest member survey, undertaken just before the EU Referendum, revealed that more small Scottish businesses expected trading conditions to deteriorate than believed that they will improve.

They said: “This is very worrying, for above all else in this post-Brexit world, we need a positive, strong, confident, dynamic, outward-looking business community, one that can create the wealth that this country so obviously depends on.

“The UK Government’s proposed new quarterly tax reporting system, if introduced, will impact negatively on many crofters and others with small businesses in the Western Isles.

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“The UK will have a fully digital tax reporting ystem by 2020, one designed to make best use of digital technology to create a simpler, faster, more efficient and convenient way for businesses to submit their figures. Under the new system, crofters and others with diverse income streams from self-employment, will have to keep their accounts bang up to date, no matter how busy they are with lambing, guests and other business activities. They will also have to report their results to HMRC every three months.

This will require a degree of expertise that many might not currently have, and it could also increase costs, FSB is working with ICAS and others to highlight the threat posed by this quarterly tax reporting proposal.”