The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald

The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald.
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.

The latest buzzwords in business all seem to be about digital tax returns.
Following concerns raised in response to the Government's proposals to 'Make Tax Digital', a ‘myth buster’ has been issued.
The hope is that this will lessen the fears of many regarding the Government's proposals for quarterly updates.
At the March 2015, Budget the Government committed to transforming the tax system, delivering a system that is more effective, more efficient and easier for taxpayers.
Digital tax accounts mean the end of the annual tax return and over the next four years the plan is to create the most digitally advanced tax system in the world.
Here are some of the myths – and why they are not true.
Myth: businesses will need to do four tax returns a year.
No. Businesses will not need to file four tax returns a year. The new digital accounts will integrate all the different information businesses already provide to HMRC into a simple, streamlined system. Instead of one big, onerous tax return each year once a quarter businesses can check that the information they are collecting digitally is correct, and simply click "send" to update HMRC.
Myth: This does not consider those who are ‘digitally excluded’ (ie not online).
There is no question of forcing those who cannot go digital to do so. Help will be available for businesses who struggle to use digital tools. People who genuinely can't use digital tools will be offered alternatives, like nominating someone else to update their information for them, or giving information by phone.
Myth: Businesses don’t want to do tax digitally.
Millions of firms already manage their tax online. 99% of VAT returns are done online, 98% of Corporation Tax and 86% of Self-Assessment returns are done online. Many taxpayers want more certainty over their tax bill and access to an in-year picture of their tax position, which their new digital accounts will provide.
Myth: Businesses will need to keep extra records and the digitisation will cost a fortune.
No additional records are needed for increased digitisation. These changes will contribute to our target to reduce business burdens by £400m. For those who aren't already keeping records digitally, there will be free software and clear, simple advice on how it can be used.
Myth: The new plans will increase errors and hinder compliance.
Not true. The scope for error will be greatly reduced - meaning fewer businesses face the shock of a bigger tax bill than they expected at the end of the year. Annually, £6.5bn is lost through error. These reforms will improve the quality of record keeping and reduce mistakes.
Here at Clay Shaw Butler, we will keep you informed of developments.
Meanwhile, the Government is reminding employers that a new National Living Wage (NLW) is being introduced from 1 April 2016 and advising employers to get ready for this change.
The NLW rate will be payable to workers in the UK who are 25 or over. For workers currently being paid the National Minimum Wage (NMW) this will mean a 50 pence increase in their hourly earnings.
The government expects over a million workers in the UK aged 25 and over to directly benefit from the increase, which sees the current minimum rate of £6.70 increase by 50p. Many will see their pay packets rise by up to £900 a year.
The government has launched an advertising campaign to highlight the new wage. More details are available at www.livingwage.gov.uk.

You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
http://www.clayshawbutler.com/news/latest-news-for-business
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