How the right approach to digital keeps the tax man happy

Are you fed up hearing about Making Tax Digital (MTD)?

It seems like that’s all HMRC is talking about. It is, however, with good reason, according to research nearly 50% of VAT registered businesses are still not Making Tax Digital ready.  This is despite April’s deadline which is compulsory for VAT Businesses above the £85k threshold.

HMRC is giving plenty of warning and if you don’t have a compliant VAT filing solution you are risking hefty fines. So if you want to keep the tax man happy ensure your business is ready for Making Tax Digital. Read on to find out how.

First things first, don’t fear switching all paper records to digital. It’s straightforward if you get the timing right and follow the 3 steps below:

  1. Speak to a tax expert
  2. Use recognised bookkeeping software
  3. Change business processes for collecting, storing and exchanging data

“The  accounts  are  so  much  easier  to  deal  with  using  Kashflow  and  the  Vat  returns  are  so  much  quicker  too  as  our  accountants  can  get  access  to  our  Kashflow  when  they  need  to,  which  also  makes  helping  me  with  any  questions  or  mistakes  I  make  easier  too.  IrisOpenSpace  makes  the  moving  of  information  so  much  quicker,  easier  and  more  secure  as  does  the  IrisOpenPayslip  system  also.  These  have  all  been  very  beneficial  to  our  company  for  many  reasons  and  having  Murrison  &  Wilson  so  knowledgeable  makes  everything  run  smoother. “ Sharon,  Mad  Crew  Limited. Client

1 Speak to Tax Expert

A tax expert will sit down with you and discuss your existing business model and get to grips with the current processes and systems you have in place. Then spend more time improving your business practices guaranteeing they work for you and work for HMRC.  Consequently, keeping the tax man happy.

2 Bookkeeping software

HMRC is making it very, very clear you can only store and exchange digital records on recognised software i.e. HMRC approved. You can find out about which systems are approved by HMRC in our blog: Is your VAT registered business digital ready

Adding Bookkeeping software to your business armour does have mutual benefits for you the client and for your accountant.

A digital accountant now has access to your financial records 24/7. This provides a snapshot of the health of your business anytime, can assist with managing cash flow and forecast the future direction of your business. Consequently the business data stored is used to build a strong business strategy that safeguards the future of your business.

Even better for you, all your business information is stored securely in one place and your accountant can offer a clear, transparent and tiered pricing structure. That means, as a client, you only pay according to the size of your business. So no hidden costs and don’t pay for services you don’t need.  As your business grows there’s built in flexibility to add services on as and when you need them.

Finally, with regards to HMRC you are always fully up to speed with your business finances and can readily supply accurate quarterly reports, on time. Resulting in a happy tax man and no costly fines.

3 Change business processes

Changing businesses processes for collecting, storing and exchanging data is a daunting project for any business to embark on.   However, there’s no escaping the fact you must align yourself with HMRC’s VAT filing processes before April 2019.

The added is advantage is you and your accountant will have access to all your own business data anytime. That means you can spot problems early, adapt quickly and continue to move your business forward. Even better you will keep the tax man happy.

“Having  my  business  accounts  online  has  been  a  brilliant  add  on,  using  IrisOpenspace,  Kashflow  and  the  payslip  options  as  well.    I  love  the  fact  that  if  I  have  any  problems  assigning  anything,  either  one  of  you  can  guide  me  through  the  process.  I  know  that  ultimately  having  my  accounts  online  makes  your  life  easier, but  the  biggest  bonus  is  how  much  easier  my  life  is  as  well,  and  I  can  submit  my  accounts  super  quick  to  you. “ Liz Bandeen, Best Ever Massage, Client

If you would like to discuss how we can ensure you meet the Making Tax Digital deadline get in touch now on 0141 290 0262

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