BUS I N ESS T HE CU T
TTAX OING AX IISS GGOING DDIGITAL DI GITAL
IMAGES: SHUTTERSTOCK / ISTOCK / GETTY
As an effort to move the UK away from paper-based book-keeping, the government wants businesses to digitally record and upload transactions to the HMRC’s system. Making Tax Digital comes into force in April.
WHAT DOES IT MEAN? It means no more typing in VAT figures on the HMRC website. Those affected will have to submit key information and data relating to their VAT return digitally instead, using software that is compatible with the HMRC's system. The software will not be provided by HMRC, so it will be up to businesses to upgrade or buy software. WHO IS AFFECTED? For now, businesses that are registered for VAT with a taxable turnover – not profit – above £85,000 will start filing their returns using Making Tax Digital-compatible software from April. There are some exceptions – those businesses seen as
having ‘more complex requirements’ don’t need to do it until October. WHY IS IT BEING BROUGHT IN? HMRC says that it will make it easier for businesses to get their tax right first time. It says avoidable mistakes cost the Exchequer more than £9bn a year. It has been argued that going digital could also save small businesses money in the long term by making the process of VAT returns more efficient. WHAT ARE THE CONCERNS? It seems many small businesses are not aware this is happening let alone prepared for it. The Office for Tax Simplification has said that its survey suggests only 25% of the smallest businesses have ‘some awareness’ that it is coming – compared with 70% of other businesses. An FSB review in 2017 suggested the costs to businesses in terms of time spent by the business owner and staff alone would be well over £2000. nhf.info/MTD
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London has its first dedicated hub for Afro hair and beauty. Over 30 hair and beauty stylists have set up at Peckham Palms in south London.
Stacey Dooley, winner of last ye year’s Strictly Come Dancing, is hosting a new BBC Three compe competition series, Glow Up, to find th UK’s next big make-up star. the
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BARBERS
Barber brothers strike concessions deal with Tesco Brothers Darran (left) and Leigh Gould, who have opened 19 Gould Barbers outlets in Tesco st stores since 2016, are set to op open a further 50 this year. The Th venture will create 300 to 400 new jobs and could n net the barbers £5m.
Over half of those working in the hair and beauty industry are facing a looming pensions crisis as most are considered self-employed, aren’t eligible for the auto-enrolment scheme and aren’t paying into a pension.
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The global beauty industry generated more than 120 billion units of packaging last year – most of which ended up in landfill or the ocean.
SALONFOCUS | SPRING 2019
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