There has been talk and a gradual move towards making tax digital for both individuals and businesses over the last few years. Newer services, such as the HMRC’s online self assessment for the self-employed and limited companies, have already made it more convenient for accountants and those who have to deal with their own tax affairs. Now, the government have released plans to make dealing with any tax affairs completely digital by 2020.
This new move to digital will be compulsory, in order to streamline tax processes. Manchester-based accountants, Alexander & Co, are here to tell you how your business could benefit from this change.
Reducing repayments from owed
The new digital processes will help to reduce tax-due and repayments owed from occurring, thanks to the ability to see your tax balance before the end of the year. Simply log in and take a look to see exactly what your business’ tax balance is.
This new feature will help businesses better plan their tax spend at the end of the tax year, ensuring that they will not need to repay a lump sum at a later stage.
Streamlined processes for better business
The ability to log on and see your tax balance is just one of the many ways that making tax digital is streamlining current tax processes and procedures. Another, is by collating all of your tax information in one easy to access system.
This system will include your business’ tax information and also any liabilities and entitlements you may have. This means you can check the exact information that HMRC may have on your business.
Update all your information from one centralised system
With this easy to access system, you will now be able to easily edit and update all of your information with a few clicks of your mouse. This helps to reduce the need to inform the HMRC of information they may already hold.
Access your tax information from any device
With the move to digital tax, comes the ability to log on wherever or whenever you need to. As long as you have your details to hand, use your laptop, smartphone or tablet to access your system and view all of your information.
This move to making tax digital will be in place within the next 3 years, so it is important that you are fully clued up on what your business needs to do in order to prepare for the switch. It may seem like a huge shake up to tax processes, however it is showing the potential to hugely benefit all businesses and individuals who have to deal with their own tax affairs.
Alexander & Co have also created this handy infographic to help you fully understand the benefits of making tax digital and how your business can prosper from the changes.