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9am Lowdown
AccountingWEB

9am Lowdown: Nearly half of SMEs still unaware of MTD

by
23rd Aug 2016
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In this morning’s 9am Lowdown, a new survey by FreeAgent has found micro-businesses still need more information about Making Tax Digital and how it will affect them, and the gender pay gap still remains – especially for women after having children.

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Nearly half of SMEs still unaware of MTD

Nearly half of freelancers and micro-businesses still don’t know what Making Tax Digital is, according to a survey by FreeAgent.

As the government released its six Making Tax Digital consultation documents last week, the accounting software provider discovered 43% of micro business owners were completely unaware about its existence, and 86% of ones who knew about the government’s digital plans did not feel that they had been provided with enough information. However, 46% of those surveyed, once they realised what the plans would entail, felt MTD would make their business life easier.

FreeAgent’s co-founder and CEO Ed Molyneux said this survey unearthed the need for the government to better communicate what tax digitalisation actually is and how it will impact micro businesses.

“We’ve already seen some confusion in recent months about how the micro-business sector will affected by digital tax, including stories about how businesses will need to file a full tax return every three months. However, the reality is that when micro-businesses are well-informed about the changes, they are actually quite positive about them- with only a small minority of people we polled saying that they felt Making Tax Digital would make their life harder,” Molyneux said.

If you'd like to find out more about Making Tax Digital, you can also click here to register for AccountingWEB’s live digital MTD conference in October.

AccountingWEB is working with Thomson Reuters Digita to collate the profession's feedback to the MTD consultation documents. You can participate in our quick survey here to share your thoughts. The survey responses will feed directly in to the official AccountingWEB response to the consultation documents.

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Gender pay gap widens after children

The pay difference between men and women diverges by 18% and this pay gap widens considerably after women have children, says the Institute for Fiscal Studies (IFS).

The IFS report finds the wage gap continue to widen for 12 years after a first child is born to 33% of men’s hourly rate, reports the BBC. Women miss out on promotions and lose out on experience. But the pay gap has narrowed since 1993 where the difference was 28%.

Robert Joyce, associate director at IFS, said: “The reduction in the overall gender wage gap has been the result of more women becoming highly educated, and a decline in the wage gap among the lowest-educated.”

He later added: “Women who take time out of paid work altogether and then return to the labour market miss out on wage growth."

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Community: Hiring part-time employees

Why is it so difficult finding experienced part-time practice staff? This is the query poised by AccountingWEB member Suepg, who has struggled to find someone to fit their criteria.

Advertising on job sites have proven “fruitless”, while agencies, as well as being expensive, only have prospective full time staff on their books. Not at the position to take on a full time employee, Suepg wrote: “I appreciate that good staff move to develop their careers - but evidently, they would only do that on a full time basis. Short of poaching our competitors staff...we are out of ideas!”

The AccountingWEB community were full of ideas. Smith.ht suggested: “Try looking for someone retired or nearing retirement age who is looking to cut back on their hours.” And Heavy Metal Mike encouraged a novel hiring route: trying the local primary school.

 What do you think? Where can you go to attract suitable candidates? Head over to Any Answers to join the conversation

Replies (5)

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Head of woman
By Rebecca Cave
23rd Aug 2016 10:31

The survey about awareness of Making Tax Digital was conducted online between 17 June and 25 July 2016, ie BEFORE the consultation documents on making tax digital were released. Of-course few businesses knew much about it - there was no solid information in the public domain in that period!

Thanks (4)
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By RobertD
23rd Aug 2016 11:46

"However, 46% of those surveyed, once they realised what the plans would entail, felt MTD would make their business life easier."
Now does that mean that Freeagent told them that MTD meant accounting was going to be all touch of a button and part of their daily routine. Also that Santa existed and that the tooth fairy wouldn't be affected by Brexit. Surely not, what would Freeagent have to gain by such rubbish.

Thanks (3)
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By youngloch
23rd Aug 2016 12:22

Did Freeagent survey Freeagent customers who do their own thing online anyway and have time, organisation, confidence and ability to do so (and are using online software....)?

Thanks (1)
Replying to youngloch:
Head of woman
By Rebecca Cave
23rd Aug 2016 17:21

Total sample size of the FreeAgent survey was 513 owners of UK micro-businesses with fewer than 10 employees. I suspect all of those surveyed were FreeAgent customers.

Thanks (2)
Replying to Rebecca Cave:
RLI
By lionofludesch
26th Aug 2016 08:00

"However, 46% of those surveyed, once they realised what the plans would entail, felt MTD would make their business life easier."

Well, if these 513 businesses were indeed FreeAgent customers, 54% seem to think that MTD will make their life harder. If that's the case for businesses already on board, we have a problem.

Thanks (1)