Revenue slammed over new penalty.
Small scale entrepreneurs could be dissuaded from forming start-ups
The Federation of Small Businesses lambasted the Revenue this week saying the introduction of the fine was a Revenue attack on ‘people who make honest mistakes’.
David Hands, for the FSB, said: ‘If people think they will be burdened with inspection they will think twice about a start-up.’
The fine comes as part of the Treasury’s efforts to push new business to register themselves promptly. New businesses will have three months to declare themselves or face the #100 penalty.
Tax experts have also thrown scorn at the measure, saying there will be technical problems.
Francesca Lagerberg of the ICAEW’s Tax Faculty said: ‘It’s not always easy to actually define a start-up.’
The real test will be whether micro businesses or individuals doing one-off jobs will have to register or face the fine.
More on the new measures can be found at www.accountancyage.com/News/1116303.