Small firms '˜in for a shock' with digital tax returns every quarter

The Government is set to roll out its Making Tax Digital plans next year meaning that small firms will have to do their returns on a quarterly basis.

Dinah Jones, founder of Jones Accountants, told The Yorkshire Post: “There’s quite a lot of people out there that don’t like keeping their records up to date. But there is something happening, which is little known in business, where the Government is insisting on what’s called Making Tax Digital.

“It means that instead of sending your information in at the end of the year via a self-assessment you’re going to have to do it on a quarterly basis.

“It’s going to be a real shock to people. They’ve made some adjustments like anybody that earns less than £10,000 doesn’t have to report every three months. But as you can imagine a lot of people are going to have to report every three months.”

Jones Accountants has recently added a new office in Leeds city centre. A move which Ms Jones hopes will allow her firm to take advantage of the city’s booming business sector.

“There’s a lot happening in Leeds,” she said. “It’s a vibrant place and I just really want to be a part of it.”

The firm will keep its premises in Morley in addition to the new office on Cookridge Street. Across the two offices Jones Accountants, which is celebrating 20 years in business this year, will employ nine staff. Ms Jones says business is good at the moment hence why the firm has decided to expand. Jones Accountants is also changing its working patterns following the opening of the city centre office. The firm will now also open on a Saturday.

Ms Jones said: “I think in the last ten years business has become completely different. It used to be like a bank was, 9 to 5.

“Accountants are missing a trick here. They need to move with the times.

“If you’re working in Leeds city centre you have to move with the times. Entrepreneurs don’t just work Monday to Friday.”

The business will be taking on additional staff with Ms Jones particularly keen on giving a few young people Saturday jobs to help them support themselves with their education.

She said: “What we intend to do is for the people, particularly who are doing courses at university etc and need a bit of experience, we’re going to give them paid employment. It’s like a Saturday job where they can gain experience and gain a little bit of pocket money as well.”

For Ms Jones it’s a way of giving back but also helps keep the office ticking over on Saturday.

“We were all students at one time,” Ms Jones says. “When you’re at university or doing a course money is tight. To be honest some people for that reason can’t go on to further education because they need some support. It’s giving back in a way.”

Looking back over the past two decades, Ms Jones says the biggest change in the accountancy profession has been the impact of technology.

The technological divide

When it comes to adopting technology to make business more efficient, there is a divide between young and older entrepreneurs.

Dinah Jones said: “Technology is a bit marmite at the moment, they love it or they hate it.”

She added: “Younger people, the majority will take to it. The older people, they just need a little more help.”

The accountancy firm has its own software, which it provides to clients for free allowing them to keep on top of quotations, invoices and payments. Jones Accountants is currently running training seminars on Making Tax Digital.

Ms Jones said: “We’re trying to get people to keep their records in a way where it won’t come as a big shock to them.

“They’ll be able to push a button and send the information every three months without any sort of problems.”

She added: “Gone are the days where you had to write all the tax returns out in pen.”