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“Making Tax Digital” is set to cost a fortune.

A survey of MPs conducted by the Association of Accounting Technicians and the Association of Chartered Certified Accountants has found 35% of them fear that businesses are not adequately prepared for new tax reporting rules, known as Making Tax Digital. Critics argues that HMRC has pushed through the changes at a time when self-employed people are preparing their business for Brexit. Separate research from QuickBooks found that 18% of small businesses, equivalent to more than 200,000 firms, were not even aware of the new requirements.
The Daily Telegraph
The Government’ Making Tax Digital programme could see small businesses spend £3.3bn on advice, fees and new software enabling them to file the VAT returns online. The Federation of Small Businesses says the average company is expected to be landed with a £2,770 bill for the changes. An HMRC spokesman called the FSB figure “child's maths”, saying the true sum was closer to £37m, or an average of £31 a year for each business.
The Daily Telegraph, Daily Mail: NACFB Morning Briefing - Monday 4th March 2019

Posted in FinTech news
P2P IFISAs given a boost by the arrival of the Big 3’s IFISAs

IFISAs are growing in uptake. 2017 to 2018 saw subscriptions of over £290 million over 31,000 accounts. By August, it was reported that the Big 3 (who were a little later to the game than other platforms) were raising the profile and boosting customer confidence in the new product. Zopa had attracted over £150 million and Funding circle, over £120 million. Because they were a little later in gaining FCA authority, they were then delayed in offering IFISAs but it is generally agreed that their entrance is creating a buzz of respectability. “The entry of Zopa, Funding Circle and RateSetter definitely helps raise awareness,” Frazer Fearnhead, founder of P2P property lender The House Crowd, says.

The big players insist they are helping everyone and that the competition is against cash and stocks and shares ISAs rather than with each other.
“The initial success of the IFISA proves there’s clearly plenty of demand amongst investors for an alternative to the lower-yielding cash ISA and the highly volatile stocks and shares ISA,” Natasha Wear, head of investment products for Zopa, said.

Posted in FinTech news