Money Box 'Making Tax Digital' and Bank Charges
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Jun 20, 2025 Sole traders and landlords brace for a major shift as tax returns will now require quarterly filings under the Making Tax Digital initiative. The discussion reveals the burden this change poses on small businesses and the potential pitfalls. State pension underpayments are also examined, shedding light on vulnerable groups who might be missing out. Additionally, community groups express frustration over new bank charges, emphasizing the need for affordable banking solutions amidst rising fees.
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Challenges of Quarterly Tax Returns
- Evelyn and Jez struggle with quarterly tax returns under Making Tax Digital (MTD).
- Jez often works remotely with poor internet, complicating digital submissions.
Dual Goals of Making Tax Digital
- Making Tax Digital aims both to close the tax gap and improve business productivity.
- Estimated increased tax revenue goes beyond initial reports, targeting long-term gains.
Choose Bank Accounts Wisely
- Community groups should list their specific banking needs before choosing accounts.
- Consider transaction frequency, access, and services beyond just free banking when selecting an account.