For those that don't know me, my background/specialism is as an accountant working with micro clients. I even developed a software package to help accountants make more money from these types of clients.
Having read the consultation document on simpler tax for the simplest small businesses I wonder if accountants will have any sole-trader/small partnership clients in 5-10 years.
It seems there is intent to enable micro clients to trade without the cost of an accountant. If low salary/dividend profit extraction from Ltd Cos is closed (which I personally think will happen) then more businesses will fall into cash accounting.
My understanding is that there are circa 4.5 million businesses in the UK and 3.5 are individuals. According to the consultation document, 3 million turn over less that £77,000* (the limit for cash accounting).
*The limit is set to rise to £150,000.
It has been suggested that low cost accountancy firms are going to target this market but I think software companies will. If I am right and you removed sole-traders and micro Ltd Co (less than £150,000 turnover) from your portfolio how much revenue would you lose as a percentage of GRF?