I assume you’ll all have heard tax going digital? Making Tax Digital (MTD) is a plan by the government to ensure that all businesses stay on top of their day to day accounts. These plans means this could be the end of paper accounting as we know it for thousands of people in Britain. HMRC hope to become one of the most digitally advanced tax administrations in the world – hence this plan! They hope that this will help increase efficiency, make compliance easier and quicker and save time overall – but this remains to be seen.
MTD kicks off from April 2019, and from then new rules will dictate that businesses above the VAT threshold will need to set up a digital tax account and file their quarterly vat returns online. Some businesses and accountancy firms are already staring to prepare for this change, and have started to move online to hopefully make the transition after April 2019 as easy as possible, with the minimal loss of time to the business.
Communication with HMRC will also become automated, which hopefully will be better for everyone concerned (who hasn’t spent hours waiting to speak to someone from HMRC?)
So, maybe now is the time to start preparing your business for this …..