This month, the HMRC’s new initiative, Making Tax Digital (MTD), came into play. It’s designed to make sure the UK tax system is one of the most advanced in the world, making it effective, efficient and easier for taxpayers. Originally announced in the spring 2015 budget, VAT-registered businesses with a taxable turnover above the VAT threshold, are required to use the new service to store records digitally and use compatible and recognised software to submi their VAT returns.
Using the right software, MTD will make the process of recording and filing tax returns online smoother. The process will be faster and more automated for firms, accountants and the HMRC, saving everyone significant time. In a process that can sometimes be complicated, mistakes can prove costly. MTD will make tax submissions more accurate and provide less room for errors or miscalculations. Ultimately, the end of self-assessment is here and the UK tax system is set to be revolutionised.
With MTD becoming mandatory, it is essential for businesses to find a software that is compliant with the HMRC’s regulations. A list of all approved VAT-compatible software products can be found on its website. Although firms must be confident that they’re using software that complies with MTD, the initiative isn’t just about complying with government guidelines. It is also a way for firms to elevate how they currently work and gain better control of their processes.
Firms should ensure that their software provider not only integrates with MTD but has a roadmap that promises further digitisation too. Whether this is the direction a business is taking right now or not, it is essential for them to be future-proofing the technology they use because the (not so distant) future is evidentially digital. If, by 2020, all businesses are expected to manage their tax affairs online, should they not start moving towards a fully digitised model?
The HMRC will essentially be ‘forcing’ businesses to enter the digital age, bringing many benefits to firms and their employees. If a law firm is to survive and stay competitive, it needs a case management system that will continuously improve to keep up with trends, as well as new rules and regulations. Tikit always responds quickly to consumer and industry changes. The latest and greatest integrations and functionalities are continually
available to all our clients, including HMRC’s MTD, which is available in the latest version of the software at no extra charge.