HMRC are convinced that making tax ‘digital’ will mean the end of the tax return and it will ‘make tax easier’.
Are you as convinced as they are?
What does it potentially mean for the normal business who doesn’t have their own accounts department?
Well, although guidelines have been issued, we can only speculate what it could mean at the final version…
How are seasonable businesses affected?
What steps should I be taking?
If you haven’t already thought about getting yourself a computerised bookkeeping system you might want to, it can make a lot of sense. For example:
- Management accounts giving information and more importantly ‘profits’ at your fingertips.
- Vat returns filed online
- Bank reconciliations done for you with live bank feeds
- Direct client invoicing via email and more importantly the opportunity to let them pay upon receipt.
- Statements to clients
- Reconciliation of your purchase invoices to the suppliers statements
Is this Real Time Information (RTI) for the self employed? Well one has to admit its quite similar. Provision of information on a regular basis and more regular payments like the employed..
Already the transfer to Digital Tax Accounts / Personal Tax Accounts, or whatever they’ll be called next, has been changed to 2018 and with the BREXIT vote, it is possible this could be delayed again but whatever the date you need to ensure you and your accountant are ready for the changes even if they are in 2020.