Whenever change comes especially in the business world, individuals and business, owners respond differently. A few embrace it while a majority would want to resist the change. Many people feel that it would disrupt their business operations while others view it as an expense, which they aren’t ready to take in. As much as MTD is a new disruptive phenomenon, its benefits far outweigh the shortcomings. Therefore as a business, you must get positive and see how your business can take full advantage of the new way of tax submission.
Heres some benefits that MTD will bring to your business:
Reducing tax dues
With the digital way of tax submission, the repayments owed and tax due is reduced tremendously. The new system allows you to view the tax balance before the year ends allowing you to plan your tax spend before the end of the year. Therefore, you don’t have to wait and pay a large amount of money something that could interfere with your cash flow.
Business processes are perfectly streamlined
Imagine a situation where you just log on to a system and see your tax balance- great experience-isn’t it? Going digital would ensure that the tax processes and procedures are well streamlined. In the system, you’ll have your tax information, liabilities and entitlement included. Therefore, you will be getting real-time updates from HMRC. This also ensures that you’re up-to-date with the government and HMRC requirements, thus avoiding delays, which sometimes have heavy penalties.
With MTD, you can access your tax data from any device
With digital tax reporting, you are able to log in to any device from wherever you are and thus you are not restricted to paperwork. You can use your laptop, tablet or your smart gadget to access the information you need. When looking for Making Tax Digital Software, you need to verify that it is a responsive one so that with whatever gadget you have; you can access any information at your convenience.
Enhances efficiency in your business operations
You are used to the paper ledgers or stashing receipts in the box. The digital tax reporting system transforms the entire business operations so that anything is accessible from the system. This ensures that your books and all business records can be updated on a daily basis and you can access such real-time. Therefore, in as much as it complies with the government policy, Making Tax Digital will help you in the business operations and reporting.
The cost of filing taxes can be quite high especially when you have to do it manually. Imagine the time it would take an accountant to compile a whole year’s report, quite some time and that means you have to pay for the work and the time spent. With the digital way of filing taxes, you only incur the initial cost of establishing the system and thereafter, you’ll need to invest very little on system maintenance and monitoring.
With the Making Tax Digital platform, you have all records and data in the platform where you can access easily and from wherever place you wish.