HMRC is on a mission: "reducing burdens for taxpayers and building a transparent and accessible tax system fit for the digital age." Making Tax Digital (MTD) is a government initiative. Pay attention to their plans or run the risk of Making Tax Difficult for yourself. Embrace HMRC's digital endeavours and you could be Making Tax Dynamic for your business.
This is our summary of business-related items contained in the March 2017 Budget, broadcast yesterday. The fact that the UK was the 2nd fastest growing economy in the G7 in 2016 and that 2017's growth has been upgraded from 1.4% to 2% is something for us all to be proud of. However, the rest of the news is very unsettling for small business owners.
From 1 April 2017, a new level of VAT Flat Rate Scheme (FRS) is being introduced - 16.5% to users who meet the definition of 'Limited Cost Trader'. It's important you observe this new rate because, unlike other FRS review timescales, it's to be applied for each and every VAT return period. So you could dip in and out of the new rate with some regularity, depending on your trading patterns. Tax avoidance has featured hugely in recent budgets and this clampdown is all part of it.