This year many small businesses have been shaken by HMRC’s proposals to introduce quarterly tax reports as part of its Making Tax Digital policy, which will be phased in from 2018 and should see all businesses complying by 2020.
Many business owners fear this means that they will be doing four self-assessments every year, certainly a time consuming prospect. They also worry that this may impact cash flow, when their tax payments are leaving their bank account sooner. The prospect of increased red tape, more opportunities to make mistakes and cash leaving their bank accounts earlier in the year is, not welcome to most businesses.
But, let’s turn this on its head for a moment…
We are fast moving into a digital age. We all accept that. If your business is not already embracing digital, it either soon will be or it will soon be struggling to keep its head above water. Plus, the processes you will need to put into place for quarterly tax reports will bring additional perks.
If you’re not already using online accounting software, then this new requirement is actually an opportunity to start and to find out just what systemisation and automation of your business accounts can do for you, while also giving you a live view of your tax position.
Instead of dreading this new requirement, how about welcoming the opportunity to be able to view your businesses vital signs much more clearly and readily? And to be honest, if you are already using online accounting, like the various apps we work with (Xero, Receipt Bank to name a couple) you’re probably not going to see much difference!
In addition, since Artisan Accounts were recently awarded the Excellence in Technology Award by AVN, you can rest assured that online accounting is something we are experts at, and despite all the recent talk to the contrary, everybody loves an expert!