Many aspects of the modern business have become efficient and paperless due to the increased usage of cloud technology. Therefore, government agencies related to taxes are also thinking of making taxes digital in coming years. This step is going to be taken by HMRC and will end the paper accounting for millions of taxpayers across the UK. This move of HMRC will deliver digitally modernized, efficient and updated taxation system to compete with the best systems existing in the world.
When this system will come in existence, i.e. from April 2019, all the businesses above VAT limit have to set a digital tax account and file their returns of very quarter thereafter online. Even if you think that your business will not exceed the limit, you must get prepared for filing the tax return digitally. Let’s try to understand what is making tax digital and it is going to affect you.
The following reasons are what provoking HMRC for making tax digital.
Making tax digital will have the same impact on businesses as well as on individuals. It will be greatly beneficial for taxpayers. You just have to send the summary of your incomes and expenses once in every quarter digitally through your digital tax account. However, if your business is below the VAT limit, then you will be exempt from it. Only the businesses above the VAT limit will have to use making tax digital business system which is starting from April 2019.
Also Read – How To Register & Check Vat Number?
To get more information about this system and to check if you will be affected by it or not, just search on the internet with keywords, Find local accountants near me and visit one of them, so that you get the detailed information about the entire system and all your queries regarding the same will also be solved. So, don’t lag behind, go digital with your taxes.