Be ahead of the game, let us help you prepare for Digital Tax
Last Monday, HMRC released the long awaited Making Tax Digital (MTD) consultations covering specific customer groups and elements of the Making Tax Digital reforms. The biggest reform since the introduction of the self-assessment tax return in 1997.
That’s great, but what does digital tax mean for you?
Well, if your annual turnover is above £10,000 you will be required to keep your records digitally and produce and upload quarterly reports to HMRC. By having accurate quarterly management accounts you can ensure you are submitting the correct information on time, every time.
So, when will digital tax affect me?
Digital tax will be introduced gradually between 2018 and 2020 so that smaller businesses have a little longer to get to grips with digital account keeping.
However, It’s likely Brexit will affect making tax digital.
ACCA's tax expert, Jason Piper, states “VAT is an EU tax, and EU law demands that a return be submitted. The Brexit vote throws all of this into confusion." Jason believes that around the end of 2019, VAT will cease to apply in the UK and it will be replaced by a UK consumption tax.
"Should the Government compound the upheaval of digital tax for VAT with the revolution of introducing a new tax?”
I suppose that’s one area where we will have to just wait and see.
So... what do I do now?
It’s simple; let us help you prepare for digital tax!
With digital tax becoming more than just a nice idea and the burden and red tape on businesses increasing, this time should be taken as an opportunity to minimise risk and improve the efficiency of your business.
- Make certain you have accurate and meaningful management reports
- Ensure your KPIs reflect your current goals
- Review processes and procedures to ensure they are as efficient as possible
- Make sure you can access your accounting records, anywhere, anytime.
Prime can simplify business for you and ensure you have the correct information to achieve your goals. Call us to see how we can help you prepare for tax going digital on 0121 711 2468 / 024 7651 8555.