New tax system requires digital records
Butchers have been advised to be ready for changes to the tax system that will require them to keep digital records.
HMRC is planning to bring in a new compulsory tax regime for every business and the legislation framing the system is being written over the summer.
The Tax Dashboard will alter the way businesses report to HMRC and will force firms to keep digital records so that reports can be submitted four times a year, in a format that HMRC sets.
The impacts are likely to include changes to daily/weekly record keeping and firms will need to use HMRC-compatible software to submit the information. HMRC hopes to fully roll out the scheme by 2020.
It’s not yet clear what will happen to the annual self-assessment return and as it stands, there are no exemptions for those that are not online.
Jason Piper, senior manager for Tax and Business Law at the Association of Chartered Certified Accountants, said: “The laws behind the system have to be passed by April 2017, so draft clauses will be published by December 2016. This means they’ll be written this summer.”
He advises businesses that want some chance of changing the regime to speak to their MP and HMRC before the end of July.
More information on HMRC’s plans are available at: https://www.gov.uk/government/publications/making-tax-digital.
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