Small firms in dark on quarterly tax

FREELANCERS and microbusinesses need more information about controversial plans for ‘Making Tax Digital’, according to research.

Following the launch of six tax digitisation consultations on Monday, a survey for cloud accounting firm FreeAgent has found 43 per cent of microbusinesses – those with fewer than nine staff – were unaware of Government ‘Making Tax Digital’ reforms.

As this newspaper reported last week, some firms will now be exempt from online quarterly reporting to Revenue & Customs. But the Institute of Chartered Accountants in England and Wales was dismayed that the exemption threshold, revealed on Monday, was a turnover of just £10,000.