As you may be aware from the news, the Government wants the tax system to become a modern digital experience. Many of you will have already experienced the HMRC digital revolution via the filing of PAYE information under RTI and online filing of VAT returns and these new measures are just the next stage of this process.
What does this mean to your business?
It will be compulsory to digitally upload your quarterly accounting data direct to the HMRC systems. HMRC has now confirmed that businesses with a turnover of over £85,000 will be required to start keeping digital records for VAT purposes only from April 2019 and the rest of the Making Tax Digital requirements will be rolled out from then.
What you need to do as a business owner?
To ensure that your business complies with the changes being introduced it is vital that the right accounting technology is in place. You will need to review your processes and current software to ensure it will be compliant for Making Tax Digital and HMRC are able to communicate through their new Making Tax Digital platform.
A modern cloud accounting system gives you the following benefits:
- It saves you a very significant amount of time.
- Gives you 24/7 access to up-to-date financial information and reports (you can use cloud-based software from any device with an internet connection).
- You can sleep at night knowing your sensitive financial data is always secure and backed-up automatically.
- No system downtime because all software upgrades are automatically installed. This worry-free maintenance saves you time and hassle.
- Since your accountant can access your data 24/7 you get more value from them – they can help you identify key issues and grow your business rather than just adding up the numbers.
We have assisted and advised many business owners on the right type of cloud accounting and internal systems, helping them to implement these as smoothly as possible.
If you’d like to learn more about how you could benefit please call Kevin Bannister for an initial discussion on 01892 507288