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| Bed & Breakfast News | March - April 2016 The ‘end of the shoebox’:


Treasury Minister David Gauke held a meeting on 3rd March with small business representatives, about the Government’s “Making Tax Digital”, which aims to get all 5m SMEs on-line and providing returns digitally by 2018. The Government is also requiring all businesses to:


1. Keep all their records digitally, and 2. Provide quarterly returns to HMRC


Exactly what data needs to be provided will be the subject of a series of consultations after the budget.


This will be a major change in how many B&Bs operate - and certainly spells the end of the ‘shoebox’ full of receipts being taken along to the accountant at the end of the year (which still happens for many).


Business leaders told Mr Gauke that getting all the tourism micro-businesses to the stage where they can undertake digital book-keeping and provide quarterly returns within two years would be nigh- on impossible - which was not a welcome message! However, the timetable is set.


So a huge communication/education exercise is needed to get micro-businesses to understand what’s coming and prepare themselves.


Immediately after the Budget, the Government will launch consultations on: what information should be reported quarterly; the use of new software that the Government is developing for SMEs to use as part of this programme; allowing third parties to access the data collected on this software (ie., letting your accountant look at what you are recording and sending to HMRC); and options for staggered tax payments. Watch this space!


What we are doing and why –


Tax is getting easier for small businesses and HM Revenue and Customs is showing how in our new video (playing here now).


We know that independent traders and people running small businesses want a simpler tax system. They are busy seizing business opportunities and serving their customers, so would rather not spend time digging out months of receipts to fill out their annual tax return.


That’s why HMRC is committed to transforming the tax system to create something that is more effective, more efficient and easier for taxpayers.


Most of the UK’s 5.4 million businesses already manage their tax online – over 99% of VAT returns are submitted online. By 2020 we will have abolished the dreaded annual tax return and replaced it with a simpler online system.


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