How the digital tax system will affect your business

Nowadays it seems like everything is going digital, and you’ve guessed it - so are your taxes. You might be familiar with storing things in the cloud (wherever that may be) and using online accounting solutions to avoid endless stacks of paper. Nonetheless, it can still be a challenge to stay on top of new systems when you’re already juggling a hundred other business activities. Have no fear, we’re here to keep you up to date on what tax going digital means for you and your business.

What is the digital tax system?
The new digital tax system has been implemented by HMRC, and is designed with the taxpayer in mind. It aims to built a transparent and easily accessible tax system that makes things more effective, and much more user friendly than previous paper based tax systems. By 2020 the system will be providing business owners like you with the following benefits.


How does this affect your business?

By the end of this year every individual and small business will have access to their own secure digital tax account (It’s like an online bank account connected with HMRC). If you’re a bit of a technophobe it would benefit you to get to grips with the system slowly and always have a trusted accountant that you can call on if you get confused. 

It’s not as scary as it sounds… In fact, it may help you avoid that ‘tax fear’ as you will no longer have to wait until the end of the tax year before knowing how much tax you need to pay. The idea is that you’ll be given a clear and complete financial picture of your tax situation (of course dependent on the provision of accurate information and the perception of HMRC). The best bit? You’ll be able to update your information at any time, day or night, throughout the year. So yes, if you like to do your accounts at 3am on Christmas Day you can (we wouldn’t advise it though).

The Chichester Accountants are always here to help…
If the new digital tax system leaves you feeling a bit hot under the collar have no fear. We’ll always ensure we’re up to date so that you can remain confident things are being done the right way. Any questions, queries or worries we’re only a phone call away. Call us on 01243 532490, or email info@thechichesteraccountants.com if you prefer.

This blog was written by Monica Jervis, small business owner, founder of the Chichester Accountants and qualified accountant. If you’ve got any questions don’t hesitate to get in contact on Twitter, Facebook or Google+.

 

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