Self-employed issued 10 day payment warning - as HMRC tax overhaul criticised
HMRC shared plans to alter how the self-employed manage and pay their tax costs as the Government plans to overhall the entire system. The changes, coming into force in 2023, will mean freelancers and small businesses will be taxed on profits arising in a tax year, rather than profits of accounts ending in the tax year.
“It actually changes one system for another equally complex system, with the additional requirement for accounts to be apportioned in order to fit with the new system.
“HMRC suggest that the new system will prevent many thousands of errors every year, however it is likely to generate at least the same volume of errors as the current method.
“In reality HMRC’s proposal is not a simplification, it is purely about aligning payment dates for Making Tax Digital, which they are forcing upon self-employed people from April 2023!”
While it remains to be seen how the changes will impact freelancers, self-employed workers have been warned they have more current tax obligations to concern themselves with now.
