The government’s drive to make tax digital has been swamped with setbacks in recent years, and it seems there’s more to come.
Originally intended to be operational from April 2018, the government has announced the scheme will be delayed again by at least two years, with a new projected start date of 2020.
Yet despite this hold up, quarterly digital VAT reporting will be mandatory from as early as 2019…and while change can be daunting, there are several strong reasons why businesses stand to benefit from going digital with their accounts. Here’s why;
1. You’ll save time.
Automated systems will speed the process up and though you’ll be submitting your tax information more regularly, your time spent collating, interrogating and processing these details should significantly decrease.
2. Better forecasting and budgeting.
Being able to keep track of your tax affairs online means no hidden surprises or unpredictable billing. Not only will you be able to easily see how much tax is owed and by when, but you can make choices over how to pay using your online account.
3. Accurate, real-time information.
Regular submissions will keep your information up to date and most importantly, accurate; tax-relevant systems will be interconnected so that data can be collected at source and information doesn’t need to be recorded more than once.
4. More convenience for you.
Going digital means better access for you, whether that’s online on a desktop or via mobile apps. There will also be options to link your tax accounts with other business financial software, for streamlined accounts and better financial planning.
5. Improved visibility, control and overview.
As well as seeing how much tax is owed, you’ll also be able to see how and why it’s been calculated. Digital tax will enable you to have a complete overview across all of your taxes, giving you more control over how you manage them.
6. Less paperwork.
No more tedious forms to fill in and post! HMRC will populate digital accounts with information they already hold, along with data from third parties – you will just need to check that the information is correct.
7. Simplified systems.
Going digital should make life easier for everyone. Logging in will instantly show you everything you need to know about your tax accounts, and regular record-keeping should result in less burden and pressure felt at the end of each tax year.
8. Tailored to you.
It’s not only you who will get a better overview of your accounts; HMRC will too, and should therefore be able to offer you help and support based on what is relevant to your specific needs and circumstances.
For more details on how digital tax could impact your business, and for further information on how to get your tax accounts set up online, feel free to get in touch with us at Chippendale and Clark for some friendly, no-obligation advice.