Are SMEs equipped to deal with HMRC’s Making Tax Digital initiative?

Are SMEs equipped to deal with HMRC’s Making Tax Digital initiative?, accountancy advice, UK tax advice, free tax advice, free company advice, changing from sole trader to limited company, how do I change from sole trader to limited company, limited company advice, forming a limited company, changing from sole trader, sole trader advice, Omni Chartered Accountants, Chartered Accountant Wolverhampton, Tax Advice Wolverhampton, Payroll Services Wolverhampton, CIS Accountant Wolverhampton, Accountant WolverhamptonOne of the keys to HMRC’s “Making Tax Digital” initiatives is the assumption that small businesses will have access to, and be competent with, digital tools such as software or apps to keep records of their trading, income and expenditure.

It is also a fact that many small businesses lack the time or skills to use digital accounting systems. If you are a small business owner, does the work associated with maintaining Digital Tax Accounts concern you?

Bankstream recently surveyed around 200 accountants and found that:

  • Most small businesses don’t use digital accounting systems now
  • Accountants don’t expect this to change over the next 2 years
  • Most accountants are unsure how they will service clients who are unable to use digital accounting systems, but many expect this work to end up on their desk

These results reveal the extent of a common misconception in Whitehall – that most small businesses use (or could use) accounting software to keep their books.

In contrast, Accountants understand that despite an ever-expanding range of small business accounting software, apps and online systems, most small business owners lack the time and/or skills to use such systems. From a business perspective, quite correctly it is about “fit for purpose” and cost.

With the wheels of change now rolling towards the introduction of Digital Tax Accounts and quarterly tax updates, accountants are considering how to equip their practices to cope with increased workload.

Automation of manual tasks such as transaction collection and data entry is a common priority so, while it might be out of reach for many of their clients, accountants are turning to technology as a solution to their current and mounting workload issues.

Are SMEs equipped to deal with HMRC’s Making Tax Digital initiative?

As a business what are your plans and concerns? Talk to us on Twitter @OmnitasTax and let us know your thoughts – remember that Omni Chartered Accountants are here to provide free, impartial advice. Call us today on 01902 837 408 or request a free of charge call-back from our website.

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