This signifies a major change in the way tax is assessed and managed – requiring all businesses and individuals to use HM Revenue & Customs-friendly software in order to comply with their reporting requirements.
For businesses with a turnover over £10,000 this change to the tax regime will also mean that they will have to prepare quarterly updates and keep their records digitally. HMRC will use this information to formulate a business’s annual tax bill.
Under the current proposals, which are currently under consultation, businesses may also be able to:
- update and assess tax information in real-time
- make voluntary early payment of tax owed through an online payment system
- account on a simplified cash basis, rather than accruals, if their annual turnover is below a set amount (likely to be between £100,000 – £166,000).
Alongside this HM Revenue & Customs will be able to access third party information via banks and other institutions allowing them to complete certain aspects of the online accounts, which may prove useful for some businesses and individuals, but that will need to be checked for any irregularities or errors.
At Moore Thompson we are taking a proactive approach to these changes to ensure businesses are prepared for the challenges ahead, by offering our expertise and experience with online accounting software.
We use a number of HMRC-approved online accountancy software products including Sage, Xero and QuickBooks, which are quick and easy to set-up and use – allowing you to take control of your finances on the move.
So why not get ahead of the game by signing up to our online accountancy services, so that you and your business are prepared for the future of digital tax.
To find out more about our online accountancy services, please contact us.