Many contractors put off by a growing digital tax system
The Association of Accounting Technicians (AAT) report has revealed that of the 1,000 self-employed and small businesses with less than 10 employees, 68% said they believe the tax system is becoming too digitally focused, with 39% saying they felt excluded due to lack of resources and understanding.
It was also found that the introduction of Real Time Information (RTI) has added pressure on the small and medium-sized business community.
Director of Professional Development at AAT, Adam Harper commented on the findings, “It’s clear that conducting one’s tax affairs online is a time consuming and daunting process for some and this has caused many micro businesses to either stick to old methods that they are more comfortable with or seek third party support.
“While reporting digitally and in real time will be hugely beneficial in the long-term; we do have to cater to the fact that not all small business owners are digitally as engaged as others. Many are capable of filing online but choose not to, and the majority don’t use technical solutions that have been designed to make their lives easier.”
He added, “If we want an ‘entrepreneurial UK’ in which startups thrive then we need to simplify the process and offer more support to those that need it, and ensure that ‘tax isn’t taxing’. No business should feel digitally excluded and more needs to be done to engage those most at risk of being left behind.”
How does tax work for a Limited company? Read our plain English guide to Contractor Tax here, and, if you have any further questions about contracting, or would like to book a free face to face meeting with a member of our New business team, please call 01442 275789 or email email@example.com.