The drive for businesses to go digital is rapidly gathering momentum under HMRC Making Tax Digital Campaign (MTD). The first deadline is less than 7 months away – affecting VAT registered businesses (above the £85k threshold). One in four businesses are still not acting fast enough – despite HMRC pressure.
Are you ‘Making Tax Digital’ ready?
It’s worth noting that MTD for VAT Registered businesses is just phase 1. MTD will trickle down and affect all.
The expectation is that all financial transactions will be digitally recorded. Every accountant, bookkeeper, even small businesses and sole traders must get on board sooner rather than later. Preparation and organisation is key avoiding last minute mistakes during the transition of financial records.
Why are people not Making Tax Digital?
I was keen to find out why business owners are resisting change. Speaking at networking events I’ve asked people why they are reluctant to switch from paper to digital. Superficially it appeared people simply don’t like change.
Drilling down I’m realizing people are confused and don’t know how to get started. Switching from paper to digital is considered to be overly complicated and many fear risking mistakes. On the flip side if you don’t comply you risk hefty fines.
The transition from paper based accounting to digital is easier than you think.
Since 2013, our focus is digital accounting and supporting paper-based businesses to integrate digital into their own business – we even help other accountants. Read on to find out how we can help you can meet HMRC’s timeframe.
Getting started with Making Tax Digital
The first step is start talking to an expert with the right skills, experience and uses approved digital tools. This will guarantee Making Tax Digital is stress free -and you remain on the right side of the tax man.
Advantages of going digital
Going digital is not just about keeping the tax man happy. It should be an integral part of your strategic business plan. A huge number of positives are gained by integrating digital accounting software into your business.
Overnight, business data is in one place and easily accessible. The organisation becomes easier to manage and now you have a clear financial overview at your fingertips for informed decision making.
Transition your business today, free up time to transform your business tomorrow.
Visit our Making Tax Digital web page to find out more about services and download our Making Tax Digital Guide.
Contact us today for advice on meeting the VAT registered Making Tax Digital deadline and recommended digital software.
Simon Murrison, Chartered Accountant.