As a country, we’re set to see a monumental shift in how we submit our VAT records and Tax Returns to the government. Come 2022, VAT-registered businesses with a taxable turnover below £85,000 will submit their taxes digitally. Why has this change come about? Recent years have seen avoidable mistakes cost the Exchequer more than £8.5 billion! This astronomical miscount has already led some to transition to cloud-based accounting. In doing so, they have been able to provide promising data for HMRC’s Making Tax Digital service.
But what is cloud-based accounting?
Cloud-based accounting is an easier system for sole traders and limited businesses. In recording your taxes digitally, nothing gets lost in transposition. It’s already proven itself to be an effective and efficient service that has little error. It’s a streamlined approach to financial administration, which could stabilise accurate tax submissions. Better yet, cloud-based accounting is secure and acts as a protected vault. Both you and your accountant can access your finances in real-time as it’s hosted on a remote server. Due to this, your data is automatically backed up and is safe from incursions or emergencies, such as a power cut.
Artema already follows HMRC’s Making Tax Digital service. So, if you’re yet to make the transition, we can help migrate your current records to these new systems. We can also help train both you and your staff on how to use them too.