A welcome break on digital tax drive, says Nova Contracting
News of further exclusions and potential delays in the Government’s digital tax drive, offers a welcome break for many contractors, according to Nova Contracting.
1.3 million small firms will now no longer be required to update HMRC quarterly or keep their records digitally, adding to the 1.6 million already excluded from the new rules. HMRC is also considering delaying the deadline to go digital for a further tranche of businesses.
Nova Contracting's director, Marcus Green, said, “This will be a welcome break for many contractors and freelance workers. Although the new exclusions only apply to businesses with annual income below £10,000, HMRC is also considering extending the deadline for firms with higher turnover, although they haven’t yet specified an upper limit.
“It does not mean the end of the Government’s digital tax drive, but it does give a clear signal that HMRC recognises the challenges as well as the opportunities of contract working.
“Digital tax accounts, if successfully implemented, will help employment providers and contractors to keep track of earnings, pensions, savings and liabilities, but the change must not be rushed through.
“We already work with agencies and contractors to provide year round tax planning services and will monitor the current consultations on Making Tax Digital closely to ensure that we are prepared for any further developments.”