Confused about digital tax? Many are in this rapidly advancing technological age, the purpose of this blog is to clear up any confusion or false information you may have heard regarding this modern convenience. The ongoing belief that more traditional approaches are still the most efficient way is false and going digital should be a primary consideration.
At SM Vint & Co, this month’s blog is focused on clearing up common misconceptions regarding digital tax. For more information, call us in Banbridge on 02840 662 490.
Making Tax Digital is Unpopular
With its sudden and impactful emergence, it’s a given MTD has seen opinions drawn from both sides due to some still showing preference toward more traditional methods. A recent government evaluation revealed that in fact, around 1.4 million businesses had signed up to MTD for VAT related issued by March of 2020. Such numbers certainly show the popularity of this method is considerable and growing.
It’s to be expected coming to grips with the new software involved with MTD will take longer for some, but once you do the payoff will be more than worth it. Time saved in excess of over 7 hours a month is one of the stand outs, a considerable difference as apposed to more traditional bookkeeping methods, allowing for extra time to be used more productively.
As well as being clearer cut in terms of viewing your businesses overall finances, the software automates time-consuming admin tasks, including the sending of late payment reminders. Therefore, despite common misconceptions, this method is actually more efficient than the more manual alternative.
You Keep Extra Records
As confirmed by HMRC themselves, MTD will not require you to keep more records as was previously required, and nor will you be obligated to provide them with more information. Meaning despite the change of process you will not have to provide a different amount of information than when you opted for the bookkeeping method.
Furthermore, your own records can be stored more easily and in such a way that the readability is increased tenfold. This will make the prospect of locating a specific file or piece of information easier than ever before