It is not long since most accountancy was done on wide sheets of analysis paper and a calculator, a small step up from the abacus. But technology is here and there is no getting away from it as HMRC embraces technological changes and the use of it becomes a legal requirement.
At first, it seemed that HMRC was integrating technology slowly, with websites and then digital submission possible. The pace of this switch to technology reliant systems is now at full throttle.
MTD (Making Tax Digital) for VAT has now been fully implemented and after a few teething troubles is running smoothly, I have VAT registered clients for whom use QuickBooks for electronic submissions and also who prefer the use of a spreadsheet and require the use of bridging software to make submissions. This experience at MTD should stand us in good stead for the next phase.
MTD ITSA (Making Tax Digital for Income Tax Self Assessment) which requires all small businesses and self employed earning over £10,000 per year, including property income, to join the scheme and make quarterly returns, is on its way and will be paperless. MTD for corporation tax will be implemented at a later stage but probably 2026.
There is no need for panic, changes need to be made but we have just over two years to prepare. At ABC we are putting together packages to try and help businesses, whether they are technophobes or early adopters. We aim to offer a range of MTD services including:
- A full service, picking up receipts, scanning them in, logging them and submitting the quarterly returns
- A mid range service where the client scans the receipts and sends either through the QuickBooks app or in emails, then we log them in and submit the returns
- Provision of QuickBooks with a check and submit service
- Just QuickBooks
So throw out the abacus, let us help you get digital.