HMRC are focused on an ambition to ‘become one of the most digitally advanced tax administrations in the world’ and with a statement like that, additional compliance and headaches are likely to follow, whatever the size and sector your business operates in.
Making Tax Digital or in short MTD, is coming into force for VAT in April 2019 as a part of the government’s wider plan to embrace the benefits of the ‘Digital Age’. MTD is designed to make the administration of the tax system more effective and efficient, by reducing avoidable mistakes in tax returns.
In little under a year all businesses that file VAT returns will have no choice but to file those returns online and through dedicated accountancy software. The move is part of the Government’s Making Tax Digital programme, and businesses are far from ready.
The first phase of Making Tax Digital for Businesses (MTD) will come into effect in less than 12 months time. While the quarterly reporting for income tax purposes has been pushed back until at least 2020, the digital reporting for VAT purposes is on schedule and will impact all VAT registered businesses with turnover above the VAT threshold from 1 April 2019.
Financial reporting provides a key role in the relationship between accountants and clients, especially as an aid to insightful business advice. This reporting and communication forms part of the regular management information needed by business owners and management teams to make well-informed decisions moving forwards.
In a recent internal charity course, we broached the subject of what might keep Trustees awake at night. The usual topics came up; GDPR, funding, regulation and of course appearing on the front page of the Daily Mail. One other point that got regularly mentioned was finances, in particular the lack of available real-time financial information.
The Cloud has become an increasing part of our everyday lives both socially and professionally. The accountancy industry is no exception.
With a wide range of online accounting software solutions on the market and the relatively recent developments from packages such as Xero and QuickBooks, the move by small business owners from manual bookkeeping or a traditional desktop solution to a cloud-based version is inevitable, if it has not been made already.
Online accounting is no longer just an industry buzzword. It is increasingly becoming the norm with more and more businesses putting their accounts in the cloud, but does it really make your business more efficient or is it just another tool you have to wrestle with?