9am Lowdown: Treasury select committee hears of MTD burdenby
Good morning and welcome to Wednesday’s 9am Lowdown. The Practice Excellence Live webinars continue with today’s offering focusing on Tax.
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Treasury select committee hears of MTD burden
The Treasury select committee heard yesterday the burden Making Tax Digital will inflict on small businesses and accountants yesterday, reports the Telegraph.
Frank Askew, ICAEW’s head of tax, added his concerns. “We as professional bodies want to support the road to digitisation... but the way at the moment it’s being framed, the terms of the consultation mean it’s very difficult for our members to give their support.”
Rebecca Benneyworth told the select committee chairman Andrew Tyrie how accountants are hiring trainers to help their clients with computer skills.
While, Mike Cherry, head of the federation of small businesses, criticised HMRC’s advertising efforts because “small businesses are certainly not aware this coming down the track” and suggested 2025 as a viable timeline for delivery once software and processes are bedded in.
“The idea that you’re bringing it in for sole traders and landlords in the first tranche before testing it properly, before bringing it in starting with large businesses... I think we are going about this in the completely wrong way,” said Cherry.
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PwC finds 15 stores close a day on the high street
A rate of 15 stores closed on the high street in the first six months of 2016, research from PwC has found.
In further bad news for retailers, the number of new shops opening has fallen. But while the high street struggles, the advance of online shopping is “booming” with many of the name brand retailers, such as Carphone Warehouse and Lloyds pharmacy, have seen growth in their click and collect services between 2015-2016.
Madeleine Tomson, PwC’s retail and consumer leader, is optimistic about the high street’s future. “Despite the uncertainty and fall in number of store openings, consumer sentiment has rebounded following the post-EU referendum dip. With employment levels still high and price inflation yet to hit the shops, the majority of the UK public believe they will be better off in 12 months.”
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16% of jobs automated by 2030
Deloitte has revealed that 16% of all UK jobs could be automated by 2030, with new technology reducing £17m in public sector wage costs by 2030.
The Big Four firm believes technological advances will lead to “repetitive and predictable tasks” being undertaken by software or devices.
But Mike Turley, global head of public sector at Deloitte, doubts this will lead to public sector job loss. He said: “For many roles, particularly those requiring a high degree of cognitive skill, automation is likely to complement roles rather than replace them.”