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It perhaps goes without saying that we are about to enter a very difficult time for businesses, particularly those in the small and medium sized sector. It is not just that many of these companies depend on government contracts that are being cut across the board. It is also indirectly as government departments find every way they can to save money. A good example of this is in the news involving H M Revenue &  Customs (HMRC) as they look to save £1.25 million.

The HMRC is responsible for the collection of all taxes and issues a prodigious amount of paperwork, much of it duplicated as it is sent out both to taxpayers and their agents. There has already been a move away from sending everything to agents. The latest announcement concerns a selection of Pay as You Earn (PAYE) and Self Assessment (SA) notices.

The notices affected will now contain wording to say that paperwork should be shown to professional advisors. However, it is inevitable though that much of the information will not reach accountancy firms. HMRC appreciates the possible problems and is being asked to ensure that the information contained in the notices is available to agents when they go online to deal with their clients’ affairs.

Many accountancy firms have found that using the HMRC’s online services has proved far more efficient and enabled them to control their costs. Indeed, many businesses are looking at online accounting as a total solution ensuring low cost accountants are a real option for all businesses.

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