For a few months now businesses here, there and everywhere have frequently heard about the digital tax revolution. However, is it a big deal? What do I need to know? How will it affect me? Is it a good thing? Is it a bad thing?
HMRC have recently published more information months after carrying out extensive research to show you how the modernised tax system will be of benefit:
- Does your business still prefer to use the good old excel spreadsheet to record receipts and expenditure? Great, this will eventually be linked automatically to HMRC so that updates are sent directly through to them. This was something small business owners really wanted maybe you were one of them?
- Don’t have the money to pay for even more business software? Fear not the new digital tax software when available should be free to some of the smallest business owners.
- If your business really isn’t moving forward with the current times and can’t physically go digital don’t worry YOU DON’T HAVE TO!
- Are you a landlord who earns a turnover less than £10,000? Do you want to be cool and go digital? you’re more than welcome to join in on all the fun!
- The option to account for income and expenditure on a simple ‘cash in, cash out’ basis will be extended this is going to help an extra 2.5 million self-employed businesses and unincorporated landlords
- Do you work for a charity? Does this seem like a lot of extra hard work? You will not have to keep their records digitally or make quarterly updates PHEW!
- TIME allows you to learn, customers will have at least 12 months to become familiar with the changes before any late submission penalties will be applied; following feedback from respondents, HMRC will also consult again in the spring on a new penalty model.
- What date can I expect to see these changes? HMRC will pilot these digital systems with hundreds of thousands of businesses before rolling them out to ensure the software is user-friendly, and to give businesses and landlords time to prepare and adapt.
It’s not all bad news! Let’s enjoy the new journey and embrace the new digital tax changes!
NEW YEAR: NEW OPPORTUNITIES!