Nearly half of all small businesses have lost money because of Making Tax Digital, according to a report by Pandle.
The survey of 1,000 UK small firms has revealed that 49.23% have lost money by making mistakes on the new digital form of self-assessment – despite believing their suitably informed about the process.
A government initiative, Making Tax Digital will see the process of self-assessment become fully digitalized by 2020 – meaning all business owners will submit and manage their tax returns online.
Making Tax Digital Explained
63% of respondents feel “prepared” for the change – with just 20% unaware of the concept.
However, 48.3% of small enterprise owners believe the process of self-assessment will be become more inconvenient once its digitalized – with 13% concerned they won’t be ‘techy enough’ to understand how to use the online platform.
Lee Murphy, owner of Pandle, said:
“It’s great that HMRC is allowing small businesses extra time to adjust to the system. While there’s a lot of information available on the current system, these things are never as easy in practice as in theory.
“It will be increasingly important for companies to understand the self-assessment by 2019 when quarterly reporting is required. We conducted this survey for insight on how we could best contribute to small businesses who are struggling with the current tax system.”
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