Did you spend last month worrying about getting your tax return done? If so, you’re probably not the only one, with HMRC reporting that 702,171 taxpayers filed their returns on the day of the deadline this year, and 958,296 missed it altogether.
The number of late returns might be surprising to some, considering the large window from the start of the tax year on 6 April to the 31 January in which you have to complete a return. But let’s face it – when you’re busy running your business, paperwork is usually the last thing on your mind.
It’s not easy to keep track of every last record and receipt, and it’s time-consuming to collect them all together at the end of the year and work through the self-assessment form.
Next year, make sure you have nothing to worry about, by using digital accounting tools to make the process simple and pain-free.
By keeping all of your records in one place and updating them throughout the year, you’ll have easy access to everything you need for self-assessment when you come to complete it – no more last-minute searching for receipts and paperwork.
Cutting out manual data entry also means there’s a lower chance of mistakes being introduced as you type information into your software yourself.
Online accounting software is also highly accessible, allowing you to check and update your data from any device with an internet connection.
Get the support you need
Most cloud accounting software lets you add other users to your account, so you can add your accountant or members of staff who can view your information at the same time, without having to make copies of your data.
From our point of view, this is a particularly valuable feature, allowing us to offer relevant advice to our clients, whenever they need it.
Using your online accounts as a starting point, we can help you to set up reports on your current position, monitor your cashflow, and plan for the future.
Prepare for digital tax reporting
VAT-registered businesses are already required by law to keep their records and file VAT returns digitally, under Making Tax Digital (MTD).
It’s likely that more businesses will join them in the near future, as the Government has indicated it eventually wants to bring income tax and corporation tax into the scheme.
By setting up your accounting software now and making sure it meets MTD’s requirements, you’ll be more than ready when the scheme extends to you.
We can help
At Knight & Co, we recommend that all of our clients switch to a digital accounting solution that meets their business needs.
We work with KashFlow, FreeAgent, QuickBooks and Sage, and we’re happy to adapt to whichever solution suits your business best.
Contact us to talk about your digital accounting options.