Are you ready to ‘Make Tax Digital’?
From 1st April 2019, the government will ‘Make Tax Digital’. Fortunately, this change is likely to pay off for everyone in the long-term. But in the run-up to going digital, there some things businesses will need to take care of.
The plan to ‘Make Tax Digital’ means making sure businesses registered to pay VAT use the appropriate online service. Many businesses already keep digital records for tax purposes and submit their returns online. This is because, in January 2019, real-time tax reporting to HMRC became compulsory. But if you’re new to the system, or aren’t quite digital yet, the sooner you switch, the better. That way you can stay on the right side of the law and increase your efficiency when it comes to your tax returns.
How to go digital
To stay compliant with HMRC, you’ll need to make sure you have top-notch accounting software that uses automation to record, store, update, and report tax information. With accounting software, the hardest part is the installation and set up.
Once this is done, your accounting will run much smoother, and you’ll have everything you need to avoid any penalties from HMRC. But, don’t worry. Big Hand can set you up with a premium accounting software, called FreeAgent, for free via NatWest bank which will have you HMRC compliant as soon as possible.
Why you need to go digital
As a business owner, there are many rules you need to stick to in order to remain lawful and make sure you are contributing your share of taxes. You must:
- Carry out auto-enrolment of your staff into a workplace pension scheme
- Set up a PAYE system to report to HMRC, add new staff, and calculate the taxes due on payments to staff members
- Give each employee a tax slip for each pay period
- Submit your annual tax return
All of this takes time and effort, which is time and effort that could be directed into your operations rather than accounting. This is why making tax digital is a blessing in disguise. While the transition period may be inconvenient, the benefits of efficiency and heightened organisation the switch will bring far outweigh this. So, switch today to start your easier, digital future.
Big Hand is here to help you make your tax digital. We can set you up with FreeAgent for free via NatWest bank meaning you can sit back and relax during the switch. You’ll be ready to kick your business off with a more efficient tax system when we’re done! And, if you want even more time on your hands, we can take over your accounting for you. To get started, give us a call on 0161 327 2911.