By 1 April 2022, all VAT registered businesses must sign up to Making Tax Digital. This system will reduce your paperwork and save valuable time when completing tax returns.
This week’s blog at SCS Financial Management looks at the benefits of Making Tax Digital for businesses.
Less Paperwork
Making Tax Digital (MTD) provides businesses with the ability to monitor their income and expenses online whenever they want. There is no need to keep piles of receipts, invoices and documents when that information is uploaded throughout the tax year.
Not only do you not have to sort through paperwork every quarter, but HMRC now does some of the work for you. They can obtain pension information, earnings, and other data from employers and banks. These updates are automatically submitted to your tax account, which you have full access to.
Save Time and Money
Organising and compiling paperwork can take a lot of time and mistakes are easily made. In a YouGov poll, 61% of businesses said they had lost receipts in the past. With MTD, errors like this are less likely as data is uploaded onto the software throughout the year rather than being put together quickly every quarter.
Mistakes and missed deadlines lead to fines, so having a system where these problems are less likely to occur benefits any business. Rather than worrying about piles of invoices, companies can focus their energy on exciting projects and speak with new customers.
Real-Time Financial Updates
Using MTD makes keeping up to date with your financial records much easier than the current system. Without it, you can only view important information when you submit tax returns.
Monitoring transactions on a real-time basis means that you can make informed decisions throughout the year with full knowledge of your finances. This also ensures that everything is organised for you to keep track of upcoming bills and possible repayments owed quickly and easily.
With MTD, you have immediate access to financial information. You can pay tax straight away just by logging into your account. The software also comes with additional financial tools such as data analysis to help you grow your business and income.
Find Out More
Get in touch with our specialists at SCS Financial Management in Surrey today for more information about the benefits of Making Tax Digital. Call us on 07484 821 645 or fill in the contact form for a prompt response.
