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Saturday, June 15, 2024

Making Tax Digital delayed, but businesses can still gain from online accounting, says Rotherham Taylor Limited

One of Preston’s leading accountancy firms is calling on businesses to continue with the transition to online accounting, despite Government plans to delay the new regime.

Rotherham Taylor Limited has said that companies should not delay their plans to incorporate online accounting into their businesses, despite significant changes to the timeframe for the introduction of Making Tax Digital – the UK’s new online tax system.

It was revealed this week that the new system, described as the biggest change to taxation in more than 70 years, will be delayed to begin rolling out to businesses above the VAT threshold in April 2019.

For the first year, these businesses will only need to report VAT-related taxes on a quarterly basis online using cloud accounting software or via a spreadsheet fed into similar systems.

Businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.

Companies, sole traders and landlords below the VAT threshold will still be able to use the Making Tax Digital system on a voluntary basis to record and report their tax affairs.

This differs drastically from the Government’s previous plans, which would have seen all businesses, landlords and self-employed taxpayers with an annual turnover of £10,000 or more register, file, pay, and update their information online each quarter.

Michael Barton, Chairman and CEO at Rotherham Taylor Limited, said: “While we welcome the Government’s changes to this onerous system, we still feel that businesses would benefit from continuing with the transition to cloud accounting software.”

RT Clarity, Rotherham Taylor Limited’s cloud accounting service, allows businesses to monitor their performance and collaborate with their professional advisers in real-time using the software package of their choice and for a fixed monthly fee.

“We have already assisted a number of companies to incorporate online accounting into their business using RT Clarity and they are reaping the benefits. I would encourage all firms to explore the potential benefits of the software on offer, whether they are bound by digital taxation or not,” added Michael.

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