With only a few months left to prepare for MTD for VAT, many businesses who meet the taxable threshold are taking action. The mandatory process means that all businesses under the initiative will need to keep their records digitally – but there are many benefits that will be felt by customers, book-keepers and business owners alike. Find out some of the advantages below:
- Efficient Processes
The Making Tax Digital online system is a centralised hub to record your financial data, removing time-heavy tasks like frequent visits to the bank and other governmental departments. As a result, your tax recording process will become more manageable. Making Tax Digital streamlines your existing tax practices and, thanks to the provided accounts, you can access all of your tax details together with any available liabilities and claims easily.
- Minimal Paperwork
Because the HMRC get their data from a multitude of sources, businesses only need to offer a small and manageable amount of information. You’ll need to confirm that the data is accurate and up-to-date within the system. Although you may find the frequency of tax returns (4-times a year under the new initiative) high, the details which they require to be completed are minimal. This reduces the overall workload for your book-keeping processes. The Making Tax Digital software will also show electronic accounts of money flow for your business, preventing a need for printed copies.
- Reduce Tax Mistakes
Under the current system of one tax return submitted per year, there can be many errors – some of which can prove costly to your business. Small errors when you start your year can escalate to create a big problem. Various companies also file their returns late by mistake, which can leave the business owner with a bill for high amounts. The Making Tax Digital system will detect faults, errors and give reminders of deadlines within their quarterly tax returns. By opting for MTD for VAT, large organisations could save themselves huge amounts of money.
- Revenue Growth
Implementing online business software can help your business income grow. The MTD for VAT software is not just a way of making your business compliant, it’s also an effective system to use as a way of elevating the operations of your business through automated processes. You can save time on your business operations whilst gaining a granular overview of the crucial information that can help you make informed decisions.
- Quick Access
Through MTD for VAT, business will find it easy to see and track their transactions in real time. Your organisation will no longer have to wait until the end of your financial year to learn the amount of tax due to be paid or any additional owed repayments. Simply by logging in to your online tax accounts, you can gain access to all of the necessary records and information. Such instant accessibility and visibility will result in effective decisions and, as a result, your business will grow.
Implement MTD for VAT Today
MTD for VAT is the most significant transition implemented in 2019 that will impact businesses. The changes made to adapt the new digital tax reporting will benefit your business if implemented correctly. Make sure your business embraces the process today.