With the news that the ‘Making Tax Digital’ overhaul of the UK tax system will be moving into the second phase of its rollout from April next year, more business owners will need to start preparing. While many will be apprehensive about the changes, there are actually several ways it could help them.

Financial organisation and accuracy

While some small firms already keep organised financial records – or employ an accountant for small business in Goole, or wherever they are based, to do so – a great many do not. One survey showed 23% were still keeping records on paper and storing receipts in shoeboxes. Making Tax Digital will render accurate online business accounts mandatory, minimising the risk of errors.

Easier access to records

Even if you maintain accurate and up-to-date financial records for your business, moving to digital accounts will give you the benefit of easy access to them when you are on the move, via a laptop, tablet or mobile phone. This is useful during negotiations, but also cuts the risk of being hit by unexpected bills or overheads.

Less HMRC contact

Not many business owners like dealing with HMRC and Making Tax Digital will reduce the amount of contact you need to have with them by automating tax processes. This will significantly lower the chances of mistakes by either party, meaning fewer frustrating phone calls.

If you want to get more in-depth guidance about Making Tax Digital, at Adaptive Accountancy, we are available to contact at any time of day and would be happy to assist you.