Ways to enhance your business by Making Tax Digital
The advent of the government’s Making Tax Digital (MTD) roll out represents a roadmapped ambition to transform the UK’s tax administration systems into one of the most digitally advanced in the world, which, in essence, will make it easy for everyone to get their tax right and therefore is a great way to enhance your business. So from late 2019, over 10 million individuals will have their own personalised digital tax account and will no longer have to file an annual return.
Digitalisation for business will not only make it easier for employers to avoid the costs and stress associated with avoidable tax mistakes, it’s also likely to be a game-changer for those seeking a business transformation that goes far beyond the MTD mandate and its associated compliance exercise.
So, what can MTD do for you?
MTD will help you avoid tax penalties, costs and errors
At its core, the MTD roll out will reduce the number of avoidable tax errors, which means the subsequent cost of these mistakes will diminish too. There’ll also be less chance you’ll experience the stress that comes with an HMRC dispute or investigation, not to mention the potential financial penalties. HMRC’s latest tax gap figures (2014/15) revealed a loss to the Exchequer of over £8 billion a year due to avoidable tax mistakes. It’s clear change is long overdue.
MTD can help you achieve business growth
By adopting cloud-based business tools, from manufacturing and logistics to CRM and project management, it’s possible for SMEs to achieve and manage additional revenue growth. Performing online business tasks, such as payroll administration, order processing/invoicing and accounting score high when it comes to the impact of online business solutions on performance. Switch to a comprehensive, end-to-end ERP package, such as Microsoft Dynamics 365 Business Central or Dynamics NAV, and you’ll be well placed to nail a better growth that you might otherwise have forecast in your business strategy.
MTD will help you embrace digitisation
The MTD mandate from the HMRC will render traditional accounting methods obsolete for many businesses and will spell the end of computer spreadsheets, manual records and the classic shoebox system for the 65% of business owners that still use them. Their MTD obligation to remain compliant with regard to their quarterly tax reporting from April 2020 will mean uptake of next-generation business software platforms will rise exponentially. The soft-launch of the MTD VAT pilot in April 2018 has paved the way for early uptake of the scheme for those who want to overcome the learning curve and enjoy HMRC support during the critical initial stage. Those without the third party software products that can connect to HMRC’s back-end system will be unable to make the leap until they implement the appropriate platforms.
From 1st April 2019, most business will need to be ready to embrace MTD with their VAT reporting so it is critical in the lead up to this mandate that their business management systems are primed and ready to communicate in the new HMRC language. Using flexible, mid-range, end-to-end ERP systems, such as Microsoft Dynamics NAV and Dynamics 365 Central that are designed to simplify and unify business operations, will incorporate full MTD functionality. Both are backed by the brand’s familiar interface, its unrivalled integration qualities and, naturally, Microsoft’s unwavering commitment to ensuring customer compliance.
Making Tax Digital has the capacity to not only effect a remarkable business transformation, but also looks set to revolutionise the operational efficiencies of many thousands of organisations across the UK – robust business software systems permitting.
If you want to talk to one of the most experienced Microsoft Dynamics partners in the UK and find out how MTD can impact and benefit your business, get in touch with us here at TVision.