2020 marks the deadline for Making Tax Digital (MTD), the Government’s system to improve tax efficiency and speed for individuals and businesses. Needless to say, the days are numbered for accountancy firms that don’t offer digital services.
However, with almost every accountant now offering assistance with digital tax returns, is there more your firm could be doing digitally to improve business?
A brief history of MTD
After years and months working on MTD, HMRC began phasing in the system in 2017. It allowed taxpayers to created digital tax accounts, where they could manage their taxes in one place.
This was extended to businesses above the VAT threshold later that year, who had to complete quarterly digital returns for their Income Tax and National Insurance. That soon applied to the majority of businesses in 2019, with the threshold for MTD reduced to £10,000 in annual turnover.
By 2020, as we’re sure accountants are aware, all remaining aspects of MTD will come into play, including Corporation Tax.
Make sure you’re prepared
With that in mind, our first advice is to make sure you’re prepared. As MTD comes fully into force, there’s sure to be an influx of businesses seeking assistance with their taxes. Even the most determined have-a-go accountants will be baffled by the shift and look to professionals to take the reins.
There are a number of ways for accountants to deal with busy periods, including:
- Working in advance while things are quiet – Get client meetings, staff training and any admin out of the way to clear your plate for the peak period.
- Introducing flexible working
- Improving collaboration – Make it easier for clients to communicate with you and share information or documents. This will streamline your process going forward.
The key thing about MTD is that it’s utilising technology to make things more efficient. It offers more speed, flexibility and security to taxpayers, businesses and their accountants. It’s a natural progression that was bound to happen. But why not look for more ways to add these benefits to your business?
Green Cloud Hosting offers hosted desktops specifically for accountants, which can amplify the benefits of digital accounting. With access to your data, files and software from any device, you can work whenever, wherever and however you want. Get things done quicker by cutting out the commute or work on the train to meet those crucial deadlines.
The cloud is more secure too. With your data stored in three ISO accredited UK data centres, there’s no chance of your data being lost or inaccessible. The result? A better service for your clients and a real competitive advantage for your accounting business.
Want to find out more? We’re always on hand for a chat about the benefits of the cloud for accountants. Give us a call on 0161 979 0691 or email email@example.com.