Freelancers and micro businesses feel “in the dark” about making tax digital
Despite lack of information, businesses optimistic about new government initiative with just 8% suggesting its impact will be negative
UK freelancers and micro business owners feel they’re not suitably informed about the government’s new plans to make tax digital, according to a report by FreeAgent.
The survey of 513 freelancers and businesses with fewer than 10 employees revealed that 43% don’t actually know what ‘Making Tax Digital’ is, with 86% of the opinion that the government is keeping them in the dark.
Despite the lack of information, most respondents consider the new measure, which would see small businesses having to keep digital financial records and provide quarterly updates about their tax to HMRC, to be a step in right direction.
45% of those surveyed believe it will make their life easier while just 20% said that digital tax would have the opposite effect and only 8% of respondents saying the implications will be downright negative.
Ed Molyneux, CEO and co-founder of FreeAgent, said:
“Making Tax Digital will be one of the biggest changes made to the UK tax system for generations and will start to impact businesses from as early as 2018. But it’s clear from our research that many micro-businesses still require more information about what tax digitisation actually is and how it will potentially impact them.”