From 2018, how businesses and individuals interact with the tax system will change, HMRC have released a roadmap which proposes that by 2020, the tax system will be fully digital. This means that by 2020 every business and individual will have their own digital tax account and will be expected to keep records digitally and report their earnings to HMRC quarterly.
Making Tax Digital is planned to start in April 2018, requiring sole traders and property landlords (with earnings over £10,000), to start using their tax accounts to report their information quarterly. This will eventually be rolled out to all businesses, including limited companies, by April 2020; and digital tax accounts and frequent reporting mean that all businesses need digital cloud based record keeping.
At Williams Lester, we believe the solution to Making Tax Digital is quickbooks®. quickbooks® Online is a cloud based accounting and bookkeeping package, that allows businesses to record income and expenditure in as near to real time as possible.
We believe that with quickbooks®, used alongside apps such as Expensify – which allows users to manage expense transactions and upload receipts on the go, and CrunchBoards – which provides a visual representation of real time KPI’s, we can make the digital record keeping for clients as easy as possible whilst giving them the power to grow and understand their businesses better.
By David Poole, director, Williams Lester