Digital Tax
Going digital is a worry for many businesses and individuals. Whilst going digital is not a necessity for everyone, it is important you have a good understanding of when this needs to be done as well as what changes are required.
Roger Hatherall & Co can advise all businesses throughout the area regarding your taxes. Alternatively, we can take over all tax returns and make digital tax an easy change.
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Why Is Tax Going Digital?
The main reason HMRC are looking to go digital is to improve the efficiency of tax returns. Tax going digital will mean tax is completely paperless and every business with the correct software can easily submit their taxes online. Whilst certain businesses and individuals can still submit tax through paper records, this will soon not meet the requirements of tax legislation.
In the long-term, digital tax will make it easier for both the HMRC and the individuals and businesses who are submitting their taxes. Using software to complete digital tax records should make your tax much more accurate and reduce the number of errors that are currently made. This will reduce the chance of you being fined, whilst making it easier for the HMRC to manage.
For many businesses, the start of digital tax began on 1st April 2019. Any VAT registered businesses with a taxable turnover above the VAT threshold must make their tax digital and keep digital records for all VAT returns and periods after 1st April 2019.
Does Digital Tax Effect You?
Some people will not have to worry about digital tax just yet. If your business does not have a turnover above 85,000 per year, you should be exempt from submitting digital taxes. Whilst you will have to make the change in the future, there are no immediate requirements for businesses under the threshold.
If you are an individual or organisation that pays and files any tax returns in the UK, you will have until at least April 2020 to adjust to these changes. Whilst under the threshold, you will receive another year of paper documents but going digital earlier could help you prepare for when the changes do become essential. Anyone who files a tax return must adjust to these changes now or in the near future as digital tax becomes essential to HMRC.
Should You Outsource Taxes?
If you are failing to adjust to the new online tax system, outsourcing your tax returns to accountants could be the best option for your needs. Accountants will not only make sure your tax records are kept updated and meet all requirements, but they already have experience using the software, giving you complete assurance over the accuracy of your tax returns.
As accountants should have experience and knowledge of digital tax, this can also improve your own knowledge in the future. Switching from paper to digital tax could prove to be very difficult and if you are not efficiently recording your taxes through online, digital software, it could cause problems for your business. Whilst digital tax has only just begun, it is important to not get left behind in the modern world.
If this means outsourcing to accountants, it could help you deal with the change much easier. Using the best software and with great industry knowledge to keep all taxes accurate, this makes tax returns and recording much simpler.
Contact Us To Find Out How We Can Help You With Your Tax
For more information on tax going digital or to discuss tax management with our accountants, contact Roger Hatherall & Co today. Our team can provide any advice you require and discuss all the services available in great detail. Call us for a fast response on 01225 429610 or fill in our contact form to make an enquiry.
