You may view the Making Tax Digital initiative as a lot of hassle to remain compliant, but in reality it should be viewed as an opportunity to bring benefits to your business.
- Real-time tax information
Waiting until the end of the year for your tax balance will become a thing of the past. An up-to-date understanding of the precise amount owed and payments needed to be made will be achieved at any time from any device. As a result, planning for tax liabilities becomes easier.
- Everything in one place
Rather than having separate documents filed in different folders, with a digital tax system, all tax information (liabilities, entitlements) is in one central place – a personalised digital tax account. This gives you a complete view of your information and reduces the risk of information gaps due to lost documents.
- No need to repeat yourself
With this centralised system, the need to inform HMRC with information they already have is eliminated. Due to all your information being available and updated in one place, HMRC can easily retrieve anything they need to know and can also provide you with a more personalised service.
- Improved accuracy
By being aware of your tax balance throughout the year, there are reduced errors and increased accuracy regarding reporting and filing taxes. This way, you only pay for what you owe, reducing tax-due and repayments owed from accruing.
- Opportunity to digitise your whole accounting system
With a digital tax filing system being mandatory, it may make sense for your business to digitise all of its accounting processes, streamlining the whole system. A digital system can actually eliminate administrative burdens, not create them. Your business can take advantage of the other benefits that can be gained by making processes, such as invoice raising and financial forecasting, digital. To discover the benefits of working with a digital accountancy practice read our other blog post.
We’re excited that more and more businesses are experiencing what it is like to operate their accounts digitally. To make the transition seamlessly and realise the benefits it brings contact us:
- By phone 01292 388 031
- via email firstname.lastname@example.org or;
- pop along to our office 8 Miller Road, Ayr.