Revenue slammed over £100 penalty
Small scale entrepreneurs could be dissuaded from forming start-ups as a result of the introduction of a £100 fine for failing to register with the Inland Revenue, according to business representatives.
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.
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Revenue in business registration drive