Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.
Rather than submitting paper returns at the end of the year, individuals and businesses will submit digital tax returns on a quarterly basis – hopefully making it easier to plan, account for and pay the tax you owe. Here are some reasons why the new process, using the latest in online digital technology, should make both yours and your accountants lives that little bit easier.
- Submitting quarterly returns to HMRC will be quicker
- Data will be submitted every 3 months therefore kept up to date
- Using bespoke software rather than spreadsheets reduces the chances of mistakes
- Year end accounts can be produced must faster
- All tax information will be kept in one place – by 2020, every individual taxpayer and every UK business will be able to see their key financial information in one central digital account.
- Like cloud accounting software, you will have access to real time data meaning business records will be up to date, and you will be able to make business decisions accordingly
- Less paperwork as everything is held electronically!
Is your business ready? For MTD to work, it means every freelancer, every small business and every corporation in the UK having digital accounting software in place. At KPP, we already use Xero online accounting software, which is compatible with HMRC’s digital system. It is important for your business to plan ahead and get your financial systems ready for the MTD changes. Get in touch if we can help get you ready for the future of accounting.