HMRC are taking steps forward to streamline business processes by enabling them to submit digital reports and records. Known as Making Tax Digital (MTD), the movement is a critical part of the government’s attempts to make it easier for companies and individuals to keep on top of their affairs and get their taxes right. But will this actually benefit your business?
The truth is that there are a number of benefits associated with this government initiative. This includes the following:
Easy Management Via One Account
One of the main benefits associated with MTD is that you will have a single account that enables you to view all finances relating to your business. Think of it just like your online banking account. It will be much easier for you to handle this side of your business. You will also find it a lot easier to communicate with HMRC should this be necessary, as all of your records will now be stored in the cloud.
Moving To The Cloud Comes With A Number Of Benefits
For a lot of businesses, MTD will represent their first move into the cloud. Cloud files mean less paperwork, which means your business will be doing its bit for the environment. Furthermore, file management is a lot easier, as is data security.
Another benefit associated with MTD is that you are less likely to make costly mistakes. After all, a small accounting error at the beginning of the year can result in massive impact at the end of the year when you are submitting your tax return. This is something you no longer need to fret about.
Real-time Data Access And Information
One of the most frustrating things about paying tax at the moment is that you have to wait until the end of the tax year to find out how much money you need to pay – unless you work it out yourself, of course. With MTD, you will get real-time updates, which will make it much easier for you to budget for your tax, ensuring you don’t end up in a complicated situation.
The final benefit associated with MTD is that you have the ability to log into your HMRC account and check your taxes no matter where you are or what time it is. This is great for business owners and professionals who are constantly on the go.