The forthcoming snap election has forced the government to drop its Making Tax Digital (MTD) plans from the Finance Bills due to lack of parliamentary time.
The MTD initiative attracted considerable criticism primarily due to the unrealistically short timescale and lack of clarity in regards to implementation.
However, while the news to drop MTD has been welcomed by many, this should be seen more as a delay than an abandoning of the proposed initiative. What is clear is that there is broad parliamentary support for a digital tax system in the near future and that at some point HMRC will no longer accept paper records. This will prove a challenge for those who have always kept their records manually and given them to their accountant once a year. In the future everyone will be required to use software of some sort and keep records in real time.
AT DYNAMO OUR ADVICE IS TO GET AHEAD OF THE GAME
Whilst it is not yet compulsory to update your tax information electronically, getting into the habit of using the appropriate software now will save you considerable time and stress in the future.
We are already working with all our clients to put in place digital record-keeping systems through moving to a Cloud based system. As Freeagent Premium Partners, Certified Xero and Sage advisers we are in a strong position to offer topical and relevant advice to all our clients.
However, we will always advise on the best package for your business which is why we can also discuss the suitability of both all options. We will work with you to ensure an efficient transition and provide ongoing advice and training.
In addition to facilitating the change to digital reporting, moving to the Cloud brings with it a number of additional benefits, saving time, unnecessary paperwork and increased efficiency.
For more details contact us on firstname.lastname@example.org