Member Article

Small businesses advised to gear up ahead of the taxman’s new rules

North East businesses are being cautioned over moves by HRMC to introduce compulsory online tax return submissions.

Regional accountancy firm Bell Tindle Williamson, have warned that hundreds of small businesses could become liable for fines as the new rules come into force next year.

From the start of the 2012 financial year in April, HM Revenue & Customs will introduce the rules that mean any VAT-registered business must submit its returns through the organisation’s website, rather than by sending paper forms.

Regional finance expert at Bell Tindle Williamson, Emma Hartshorne-Ferguson, said: “HMRC has tried hard to communicate with companies about the forthcoming changes around tax return submission rules, but I very much doubt anywhere near as many firm as they’d have hoped or expected are fully aware of what’s coming.

“Computers have obviously become part of everyday operations for a high proportion of North East companies, but it’s also true to say that they have very little impact on many thousands of other small businesses, where the cash till is often the most complex piece of technology they use.

“Many owner-managed businesses take almost all their receipts in cash and don’t necessarily have the sorts of computerised documentation that more well-established firms can use to ensure they’re recording everything accurately.”

The firm are now encouraging owner-managers to look at what they need to do to get themselves fully prepared for their new responsibilities.

Emma went on to express her reservation at introducing a new set of regulations for businesses, at a time when many are already struggling.

She added: “HMRC has also said that it will be increasing the number of inspections that it makes of companies’ records, and there’s a real possibility that SMEs who don’t make timely, accurate online VAT submissions will be picked out for further inspection, thus creating a potentially costly spiral of tax-related issues.

“Whilst the taxman has said that a little latitude will be given whilst everyone gets used to the new way of working, we’re not expecting this to turn out in practice to be very much, and strongly recommend that companies should do everything they can now to prepare for meeting their extended tax responsibilities.”

This was posted in Bdaily's Members' News section by Tom Keighley .