Making Tax Digital is an initiative designed by the government to help pay tax records digitally and file them through online software.
Starting April 2019, any business that is over the VAT threshold will be required to report their tax returns to HMRC using suitable commercial software. Anyone who fits this category, whether they are a business, self-employed or even a landlord, will need to submit summaries of their income and expenditure at least four times a year under Making Tax Digital.
Naturally, with sharing data online, there have been some security concerns that have been raised. However, there are a few ways in which you can ease the security worries when it comes to Making Tax Digital.
Essential rules of cybersecurity
Whenever you are conducting business related activities online, it is essential you follow a set of rules to ensure your business is fully protected – and Making Tax Digital is no exception.
Our top tips to avoid cybercrime
- Use strong passwords and change them regularly. Don’t use the same password for multiple accounts. Think outside of the box when it comes to your passwords.
- Train your staff accordingly to understand and mitigate any potential risks. Emails are one of the biggest forms of cybercrime, so ensure your staff
- Encrypt data and password secure your devices. This will add an extra level of security.
- Keep your Making Tax Digital software up to date. The software company may provide updates off the back of potential security risks, so it’s best to update your accounting software as soon as required.
- Invest in anti-virus software like Virtual CISO. Every computer should be equipped with anti-virus software, whether you’re a business or not.
Embrace the change
We would advise all businesses to use Making Tax Digital as an opportunity. Going forward, this process will become much easier and could even save you money. If you’re still having trouble getting your head around Making Tax Digital, get in touch with your accountant and they will be able to run you through the whole process and what’s changing.
Once you’ve fully understood the process, it’s much less likely you will make any errors that could lead to security concerns.
If you are planning on undergoing the process yourself, and not with the help of an accountant, you will need to ensure you familiarise yourself with Making Tax Digital accounting software before the deadline. This will allow a much smoother transition and help to reduce any security worries. We recommend the following Making Tax Digital software:
- Clear books
- Sage Business Cloud
Get an accountant to help you out
Data protection is extremely important when it comes to Making Tax Digital. If you’re unsure how to use such accounting software, or would prefer some guidance, it is recommended you seek the help of a Making Tax Digital accountants.
Here at Alexander & Co, our specialist team of accountants are experienced with the new Making Tax Digital software and are on hand to ensure your accounts are prepared and ready for the switch in April 2019. Get in touch today for help with navigating your accounting tools or submitting your tax returns online. This way, you can ensure all of your data is controlled in the safest possible way.