Making Tax Digital is one of those very phrases that most business owners I speak to have heard but haven’t actually done anything about. Many admit they’ve heard it on the radio or mentioned in social media and ignored it.
Even if you are feeling particularly productive at the time, you might have added it to your mental list of things you should find out more about; one day; when you have time. In my experience, that time never comes, and then you feel bad every time you hear the phrase again because you’ve still not done anything about it.
Time also passes so quickly, maybe it’s just being a busy business owner, so suddenly you get to the time when you should really have found out more about it and that just adds extra stress to the situation. Some business owners are quite right and don’t need to do anything about it but it is likely they will have to eventually so why not just deal with it now and free up some space in that long to-do list. From April 2019, onwards all businesses registered for VAT and with a turnover of £85,000 or above, must maintain their VAT accounting records and submit their VAT returns digitally.
Exactly what this means has not yet been finalised
It will mean that if you keep manual records or use excel for your bookkeeping that you will need to make a change.
I have worked with various businesses recently who have made changes to the way they do their bookkeeping and record keeping and what that has highlighted to me is that, it doesn’t matter if Making Tax Digital applies to you from next April or not. These changes can free up so much time and give the business owners better information on their businesses, which invariably leads to improvements in their business.
I rarely meet a business owner who looks forward to doing their admin or bookkeeping and even if they don’t mind doing it, it’s even more rare to find a business owner who doesn’t have an endless list of things to do. So even if it’s so that you can spend more time with your friends and family or have some more me time (I will fit in the gym this week!), why not look into a bookkeeping or accounting system that can make your life easier.
Digital bookkeeping can allow you to manage your financial records “on-the-go”
It can link directly to your bank so that you don’t have to re-key information. You can even get bank accounts now that allow you to categorise your spending and effectively prepare the information that you need for your tax return or accounts.
One of my clients had a light bulb moment recently when she realised she could earn more by taking appointments on a Monday (her traditional admin day) than she would need to pay to automate/outsource it and it’s no surprise that she enjoys her Mondays more now doing what she set up in business to do rather than bookkeeping. Some of us love it but it’s not for everyone! A phrase that hits home with me is that you don’t know what you don’t know.
You may think you are doing things in the most efficient way but until you ask, you don’t know.
So, whether it’s so that you can ignore the Making Tax Digital phrase the next time you hear it because you’ve found out how it impacts you or just to make your busy life easier why not ask and see if anything can easily be done to help you.
Contact Lorna Wyllie at Wylie & Bisset LLP for advice, training or to outsource your bookkeeping completely on 0141 566 7000, email firstname.lastname@example.org or log on to www.wyliebisset.com and sign up for one of our free Making Tax Digital Seminars. You could also follow us on Twitter @WylieBisset or on LinkedIn.
About the Author
Lorna is a partner with Wylie & Bisset LLP. Wylie & Bisset is a leading Glasgow-based accountancy practice , with a national reach, whose growth has been organic, through referral and reputation. We have the background, expertise and extensive resources required to provide your business or organisation with the right solutions when it comes to managing and growing your business.
Our firm covers the whole of the UK, providing business advisory and support services to clients across a wide range of public and private sectors, ensuring you have access to the best possible accountancy and tax planning advice so your business runs smoothly, is financially sound and complies with regulatory and legal controls.
Our approach is proactive and “hands on” via a true partner-led service, which we believe is the best way to provide our clients with a first class service.
Our commitment to excellence and efficient service has maintained our reputation for high quality professionalism and awareness, ensuring ongoing client loyalty and recurring referrals.
If you are searching for a hands on partner led firm of accountants contact us today to see how we can assist your business.