There are potentially a couple of small but noteworthy changes heading the way of small businesses in the not-too-distant future, both announced last week. Firstly, HMRC is mulling over a proposal which would make online submission of VAT returns compulsory for firms with turnovers less than £100,000 – a group which includes most freelancers.
Although the number of small businesses still submitting paper VAT returns is likely quite small (especially in a group as vital, thrusting and forward-thinking as freelancers), it could be a shot in the arm of those who still refuse to submit online.
If HMRC decide to go forward with the measure it could come into force by next April. This move could prove somewhat mystifying for the Ministers who were recently critical of HMRC for relying too heavily on online services to the detriment of those who are still not au fait with the web. HMRC believe the process will prove quicker and more accurate for small firms.
Elsewhere in finance-land, the Pensions Bill, which mandates all firms must auto-enrol their employees on a pension after 12 weeks of service, may be getting an amendment that will allow small firms of ten employees and under that are part of larger PAYE schemes to delay the introduction of their schemes by up to 23 months, meaning some may not begin until 2016.
While perhaps not such good news for employees, who could miss out on several years of pension contributions, the move would be good news for small firms who are becoming increasingly frustrated with complex legislation and undertaking costly compliance action.
The Government has pledged to reduce red tape for small firms, however with no end to IR35 and the Agency Workers Regulations coming into force in October, things only look to be getting worse.
Photo by Images of Money – CC
