Have you heard of Making Tax Digital? By 2020 it will become compulsory for all businesses to manage their tax online.
Many companies are ahead of the curve and already use online accounting software, but there are still just as many that have not yet made the switch.
More worryingly is that there are a number of businesses that are not even aware of the governments initiative regarding Making Tax Digital (MTD).
This is where accounting companies such as Alexander & Co, who produced the infographic below, come in. Over the next few years it’s important to make companies aware of the changes they will need to make, so as to conform to the new initiative.
Plus, your accountants are there to help guide your business through the transition and can advise on accounting software that is available and appropriate for your requirements.
Making Tax Digital has been put in place to help businesses manage their accounts more efficiently, with up to date and easy access of their accounts.
The government hopes this will reduce the number of late payments and fines issued, as companies are less likely to send a late tax return and will be more aware of what they owe.
See the infographic below for more information:
Infographic Source Alexander & Co