Finance

With just weeks to go before its planned introduction, new research suggests nearly one in five businesses above the VAT threshold still know little or nothing about Making Tax Digital.

The results of a BCC survey of almost 1,000 firms from across the UK, found that while levels of awareness and preparation have increased since the previous year, businesses are still insufficiently prepared for the incoming processes. With just weeks to go, 19% of companies required to take part* have never heard of Making Tax Digital or know it only by name.

Coming just months before the UK's departure from the EU, this year's Autumn Budget came at a crucial time for business.

The BCC called on the Chancellor to take bold measures to bolster business investment, competitiveness and productivity in the face of Brexit headwinds.

The Chancellor delivered on a number of asks from the Chamber Network, including:

• Raising the Annual Investment Allowance from £200,000 to £1m
• Business rate relief for the high street
• Lowering the cost for SMEs training apprentices
• Help for repairing local roads and improving rural broadband

Ten months ahead of its planned introduction, an alarmingly high proportion of UK businesses have little or no awareness of HM Revenue and Customs’ flagship Making Tax Digital project, according to new research by the British Chambers of Commerce, in partnership with Avalara.

• 24% of firms have never heard of Making Tax Digital, which comes into effect next April for VAT
• Only 10% of firms know ‘a lot of details’ about the switch to the digitised tax system

Over half of UK businesses have not attempted to apply for finance over the past year amid limited investment intentions and weakening cash flow, according to new research released by the BCC, in partnership with specialist finance provider, Wesleyan Bank.

According to the results of the survey of over 1,100 firms from across the UK, over half (56%) of businesses did not attempt to access finance over the last year. Smaller firms were less likely to access finance than larger businesses. Almost two-thirds (63%) of small firms (1-9 employees) did not seek finance, compared just over a third (39%) of larger firms (50 or more employees).

The vast majority of UK businesses believe the cost of complying with the UK tax system has escalated over recent years, according to new research released by the BCC in partnership with Avalara.

A survey by the BCC of over 1,100 firms from across the UK found that three in four (75%) believe the overall burden of tax administration and compliance – the HMRC equivalent of ‘red tape’ – has increased compared to five years ago.