Here at Alexander & Co, we’ve been preparing our clients for Making Tax Digital for the past few months by offering the very best tax advice online and offline. By 2020, all businesses and individuals will have to use online account keeping and tax return services to calculate and pay their tax.
Businesses should start using online tax services as soon as possible, to ensure they fully prepared once Making Tax Digital comes into full effect. We’ve put together 5 pieces of online tax advice that you might want to take into consideration before diving straight in.
Create an online profile as soon as possible
Despite the fact that Making Tax Digital won’t be compulsory until 2020, it’s strongly advised that businesses start to use the online HMRC tax services as soon as possible. This will ensure that by the time the new scheme is brought into effect, you will know exactly how to use the service and be able to do your tax returns with little to no mistakes.
it’s strongly advised that businesses start to use the online HMRC tax services as soon as possible
Creating your online profile now will allow you plenty of time to make sure that all of your details are correct and kept up to date. This will help you to correctly estimate your tax owed and keep HMRC fully informed on your business.
Find the perfect online accounting software
The next step to seamless online accounting is to find accounting software that can easily help you keep track of your business accounts.
You need to choose an accounting software that has enough features to help you keep a clear and concise record of your business’s financial affairs, but not overloaded with features that may confuse you or cause simple mistakes. Your accountant should be able to point you in the right direction!
Make sure you are fully aware of the information you’ll need
Completing your tax return online isn’t that much different from completing it the old-fashioned way. However, using online accounting software could be the answer to making this process even easier than before.
Rather than attempting to round up over a year’s worth of accounts, you’ll be able to download this data straight from your software and send that straight over to HMRC as part of the online tax return process.
Ensure you have everything in place well before the tax deadline
This is another reason we would recommend getting started with online account keeping as soon as possible. Getting all of your digital accounts set up and working properly could save you a massive amount of time in the future.
If you miss the deadline for filing your tax return, you could end up facing a hefty fine on top of what you owe on your tax. Make a note of your deadline date and make sure you are 100% ready for when your return is due.
If you miss the deadline for filing your tax return, you could end up facing a hefty fine
Find an accountant that understands the world of online tax
Something that will help you enormously through your transition to the world of online tax, is finding a certified accountant that has experience and knowledge in online tax and how to get set up.
Having an accountant in your corner can make things a lot easier and remove any unnecessary stress that may come with doing your tax return online. The new Making Tax Digital scheme aims to streamline the tax return process and make it a little less stressful and expensive for businesses and individuals.
Having an accountant in your corner can make things a lot easier and remove any unnecessary stress
If you need help, further tax advice online or handling your accounts, or you need assistance getting started with online tax, why not get in touch with us here at Alexander & Co?