Last year, the government set out its vision to make HM Revenue and Customs (HMRC) one of the most digitally-advanced tax administrations in the world by 2020,
Plans for transforming the UK’s tax system, reducing burdens for taxpayers, and building a transparent and accessible tax system fit for the digital age are on track, and the government’s consultation process is due to finish in just a few weeks, on 7th November 2016.
The full details of reforms are still to be finalised, but the government is on track to create a system that employs digital technology to more accurately and efficiently collect tax due:
“From 2018, how you interact with the tax system is changing. It will become increasingly digital and most businesses, the self-employed and landlords will need to use software or apps to keep business records and to update HMRC quarterly.”
UK Government – www.gov.uk
These changes signal the beginning of a move towards ‘real time’ tax management which could see HMRC requiring small businesses, self-employed individuals and landlords having to provide regular information on their financial position, and potentially having to pay their tax more frequently than they do under the current system.
Clearly, these imminent reforms have significant implications, most obviously for anyone still using a manual system to keep a record of their accounts. It simply won’t be practical to spend time and money having full accounts prepared on a regular basis, and means that anyone who is in this position needs to start making plans to go digital.
If you’ve been putting off making the move from books and spreadsheets to using an accounting software package, this is the incentive you need to make the switch and take full advantage of the benefits an online solution will deliver:
Dramatically reduce time spent on administration
A digital accounts system significantly cuts down administration time, with all relevant areas automatically updated as data is entered, avoiding duplication of work, and reducing any risk of input errors.
Maintaining accurate accounts is a legal obligation, and something you’re already doing, but opting for a digital solution will free up time for you to spend on more valuable work.
Get real-time Insight for informed decision making
A digital accounting system will give you access to real-time reporting, enabling you to make faster, better informed business decisions
With accurate, up to date information available to you at the touch of a button, you’ll be able to see instantly how your business is performing against your budget expectations.
Let Inca Help You Go Digital Now!
These changes are going to happen, and every business needs to have a strategy in place for digital record keeping – whether that means managing it in-house, or outsourcing.
There are compelling reasons for going digital now, rather than leaving it until later:
Get access to online accounting software
From Inca for as little as £5 (ex VAT) a month!
Inca can help you to make an easy pain-free transition. Contact us now to discuss the solution that’s best for you!