New online rules could mean double whammy tax bills for small firms

As parliament debates the digitisation of business taxes today, accountant Patrick King explains how flawed proposals could result in 'double whammy' tax bills - and a cashflow crisis for some companies.

by Patrick King

Google may be big and beefy enough to conduct its own bespoke negotiations with HMRC. But most smaller firms aren't - they are stuck with the same often paper-based tax reporting and collecting systems they've had for years.

Dragging these into the digital age seems like a great idea, but what if government plans - being debated in parliament today - mean you could end up facing a bill for two year's liabilities in the course of only one tax year?

Just in case you missed it, George Osborne unveiled his £1.3bn tax digitisation project during the 2015 Spending Review, announcing that HM Revenue and Customs is working on a vast plan to provide a single location online for all individuals and businesses to manage their tax affairs.

Sign in to continue

Sign in

Trouble signing in?

Reset password: Click here

Email: mtsupport@haymarket.com

Call: 020 8267 8121

Register

FREE

  • Up to 4 free articles a month
  • Free email bulletins

Register Now

Become a subscriber

From £66 a quarter

  • Full access to managementtoday.co.uk
  • Exclusive event discounts
  • Management Today's print magazine
  • Plus lots more, including our State of the Industry Report.

Choose a Package