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One in five micro-companies uninformed on digital tax plans

A fifth of micro-firms are unaware of the government’s plans for Making Tax Digital (MTD), says a new study from accounting software company FreeAgent.

The research followed the release of further information on the government plans in late January.

The findings revealed that more than four fifths (84%) of those who responded to the survey believed that insufficient knowledge was provided by the government regarding the digitisation of tax or how business owners would be affected by the plans.

However, 41% of firms that were informed of the new plans said they felt optimistic, with 27% convinced that the MTD scheme would make managing their company easier.

FreeAgent cofounder and CEO Ed Molyneux said that MDT will be among the most significant changes to the tax system for years and could begin to affect firms from 2018.

He added:

“We believe that Making Tax Digital is a great opportunity for business owners to have proper clarity over their business finances and be better equipped to calculate and pay their tax bills. But it is also a major piece of legislation that will have a significant impact on the UK’s micro-business sector.”

While a worrying number of businesses remain unaware of the plans, it appears as though the majority agree that the effects will be positive. An accountant in the Wirral would certainly ensure that their clients are aware of such changes, as well as do everything possible to make sure their transition is a smooth one.

Posted by Mark
March 1, 2017
Research & Statistics

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