The benefits of making your tax digital

Thanks to progressions in technology we have been able to move a lot of areas of business online. Digitally optimising and adjusted our processes so that automation can help speed things up. One area in accounting that we have seen make this move is businesses making their tax digital. However despite how easy it is to make this transition we still see that some businesses are still filing their tax and books manually rather than taking advantage of technology to make the move towards making their tax digital. It’s for this reason, today we’re going to look at the benefits of making such a move.

What do we mean by making it digital?

Well, it is a process that was set out by HMRC themselves to try and encourage businesses not to be so reliant on paper-based systems but rather to make the move towards doing everything online.  The scheme went live in April 2019 and since over 1.4m businesses have taken advantage of the scheme to move everything online. However, it’s important to note that this is only for businesses that exceed the £85,000 a year VAT threshold.

What are the benefits of making tax digital?

There are many reasons why making the move towards doing your tax online can benefit your business but here are just some of the ways it can help you:-

  • Increased productivity in the workplace – the time saved on the administration that would have been needed on a paper-based system allows for this time to be dedicated to other areas of the business.
  • Reduced costs – going paperless not only reduce costs of materials but also reduces your business’s carbon footprint.
  • Reduce the stress that usually builds on your shoulders when it comes to the time of year where you’ve got to file your tax.
  • Automated calculations done by the online systems will lead to better accuracy and minimal errors when it comes to filing your tax return
  • Having access to real-time tax information.

Wanting to make the move?

If you haven’t yet made the move towards making your tax digital it’s something we recommend you start to do as soon as possible. Not only for the reasons above that you’re saving yourself a lot of time that can be dedicated to other areas of your business, but also  taking the weight off your shoulders of having to do everything by hand. If you want some advice on how you can make the transition as seamlessly as possible get in touch with a member of the team here at D&K Accounting.

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