Quarterly returns could spell then end for SME's

 Quarterly returns could spell the end for some SMEs

Writing in the Guardian, Matthew Searle, director at IPSE, examines the issues around the Government’s proposal to require SMEs to file quarterly returns to HMRC. He notes problems such as the difficulty in sourcing all data quarterly, such as interest statements from banks, which are annual, and when each quarter starts and ends for each firm. Mr Searle says the extra red tape will also provide more work for HMRC, which is already struggling to meet client demands, and will burden SMEs with additional costs. He warns: “I’ve never had a year when my accountant hasn’t needed to ask me questions when she prepares my annual accounts – regardless of HMRC’s promise that it will be less complex. I expect that she will need to do the same exercise quarterly and will charge for this additional work. For some business owners, this may well be the additional burden that tips the balance towards closing down. For prospective owners, it may be the issue that convinces them not to bother.”

Source:   The Guardian (08/01/2016)