A consultation period has been launched for proposed tax changes for those who are self-employed, sole traders or partnerships. Leon & Company, Chartered Accountants in Leeds are helping to raise awareness of possible changes so that businesses are familiar with the proposed changes and the potential impact they could have on business.
The changes aim to simplify the system in preparation for the implementation of Making Tax Digital for the tax year 2022-2023.
Self-employed, sole traders and partnerships are currently taxed on their accounts ending in the tax year. The reform would mean they would be taxed on profits arising in a tax year and is intended to align the way self-employed profits are taxed with other forms of income.
Financial Secretary to the Treasury Jesse Norman said: “These complex rules lead to thousands of errors and mistakes in self-employed tax returns every year. Simplifying them will allow self-employed people to spend less time doing tax admin and more time growing their business and creating jobs.”
Darren Stone of Leon and Company says “we are a bit concerned at the speed at which this being potentially brought in, whilst businesses are having to deal with pandemic matters at the same time. We are not saying that this reform is wrong in principal, but businesses need time to prepare”
The consultation period runs from 20th July until 31st August 2021.
