Tax is becoming digital
"Making Tax Digital" is a Government initiative that sets out a bold vision for ‘a transformed tax system and the end of the tax return’ by 2020. Not sure what it means for you? Here’s what you need to know for your business.
Making Tax Digital is all about making tax administration more effective, more efficient and easier for taxpayers, through the implementation of a fully digital tax system. The roll-out of the initiative has already begun and will continue over the next 3 years.
THE MAIN CHANGES THAT AFFECT YOUR BUSINESS
- Through your digital account you’ll be presented with a complete picture of your business’s tax affairs and you’ll be able to manage all of your liabilities at the same time, in the same place.
- HMRC will collect and process information affecting your tax in as close to real time as possible. This means you will need to submit business records digitally and more frequently.
- You’ll no longer have to wait until the end of the tax year to know how much tax you have to pay and therefore the concept of the traditional tax return will become obsolete.
COMPLIANCE - ACT NOW TO ENSURE YOUR BUSINESS IS READY AND COMPLIANT
If you are used to managing your business bookkeeping via spreadsheets or paper based records, you may wish to consider updating your bookkeeping process as paper based records make it harder to submit the required information and data about your business to HMRC, in particular if those records are required in real time, such as payroll.
In order to ensure your business is compliant, you should consider switching your bookkeeping to a dedicated bookkeeping tool, which is capable of submitting records directly and automatically to HMRC at the required times.
At Abacus Jack we use award winning bookkeeping software, powered by Free Agent. This software is trusted by over 50,000 businesses in the UK and is fully compliant with HMRC requirements. Our system replaces your spreadsheets, your shoe box full of receipts, your printed invoices, and much more. Whether you are on the move, or catching up on admin after a days work, your online account is the only place you need to visit to stay on top of your day-to-day bookkeeping and administration.
KEY FEATURES OF ABACUS JACK'S ONLINE BOOKKEEPING
- Already fully compliant with HMRC's "Making Tax Digital" proposals.
- Manage your Projects, Clients, and Time Recording online.
- Send personalised Estimates and Invoices.
- Enable your clients to pay you electronically or even by Direct Debit.
- See who has paid and who hasn't, including automatic late payments reminders.
- Manage your business expenses, including scanning receipts on your phone.
- Manage your Pay and Dividends.
- Automatically connect to your bank account to see and reconcile your bank account transactions.
- Track and forecast tax obligations, maintaining compliance and peace of mind.
Online Bookkeeping - Overview Video
This short video explains how the Abacus Jack Free Agent portal can transform bookkeeping and business administration, freeing up more of your time to concentrate on running your business.