Spotlight On: Making Tax Digital
Making Tax Digital is intended to help bring the tax system into the 21st century by providing businesses with a modern, streamlined system to keep their tax records and provide information to HMRC. The roll out of Making Tax Digital has been amended to ensure businesses have plenty of time to adapt to the changes.
Under the revised timetable, issued on 13 July 2017:
- only businesses with a turnover above the VAT registration threshold (currently £85,000) will have to keep digital records and only for VAT purposes, from April 2019
- businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes (income tax and corporation tax) until at least 2020.
Nonetheless, the increasingly entrepreneurial and competitive business environment has created a need for businesses of all sizes to have more frequently updated financial information, through the use of cloud based accounting software. If a business doesn’t strike on opportunities while the iron is hot, they miss out. The ability to move quickly very often depends on the financial position of the business, but looking at the prior year’s accounts doesn’t necessarily shed light on the current position.
We are assisting our clients with the implementation of digital systems. Digital transformation is at the core of our agenda and goals. We recognise that for clients, initiating the process of digital transformation is constrained by a lack of knowledge or capability to execute. Our experience allows us to offer a comprehensive package delivering successful digital transformation for clients. To find out more about cloud accounting you can read our factsheet.