HMRC are now considering responses to the Making Tax Digital consultations. From reviewing some of the responses that have been posted on social media, it is clear that there are concerns from professional bodies and accountants about the timing and scope of the changes.
The ACCA response highlighted issues surrounding the cash basis and suggested that it does not give an accurate picture of how businesses are performing. This reflects potential issues around applications for funding, such as for mortgages or loans. Lenders usually request information from accountants which they will use to consider applications.
The Autumn Statement did not give any indication of the potential areas of concern that HMRC will seek to address from the consultation. All we know currently is that HMRC are going to be releasing more information in January, once they have considered the responses they received from the consultation.
We are particularly concerned about small businesses and how the changes will affect them. There have been a number of changes recently including auto enrolment pensions which has affected small employers.
We have been working to try to get the best deals on software packages for our clients to help them transition to online bookkeeping packages.
We are happy to answer any questions about the changes and how it will affect your business.