Making Tax Digital: Let’s explore the new legislation in the UK
If you’re a business owner in the UK, you’ve probably already heard about Making Tax Digital.
It’s the new UK legislation from HMRC introduced to ensure the UK tax system is more accurate, efficient and easier for taxpayers. Coming into effect on the 1st of April 2019, you’ll no longer be able to upload your tax return online through the HMRC gateway or by post. Instead, your business will need to keep digital records of your finances in Making Tax Digital compliant software, that will connect directly to HMRC.
Making Tax Digital is another reason to say goodbye to spreadsheets and hello to the cloud.
Just like using cloud-based rental management software, using cloud accounting software comes with tons of benefits. These include:
- More accuracy - reduce the chance of human error and entry mistakes, and let your software do the sums to keep your financial data accurate
- More efficiency - when everything runs smoothly through a dedicated software solution, you’ll be saving yourself valuable time on administration tasks
- More information - your accounting software will be your central source of truth - you’ll always know where your finances stand, letting you make business decisions in real time
- More security - it’s a lot safer in the cloud. With secure data backups and encryption, you can be sure your financial data is properly protected
Current RMS integrates with both Xero and QuickBooks Online.
Both are used by millions of customers around the globe, and integrate with your rental business data in fairly similar ways. You can:
- Post invoices straight from Current RMS to either software solution, keeping both systems up-to-date and meaning less data entry for you
- Create linked contacts in Xero or QuickBooks Online for any organisations created in Current RMS
- Any changes made to linked organisations can automatically update the linked contact in Xero or QuickBooks Online
How can you prepare?
We recommend reading up on the new legislation and working out which processes or accounts software solutions will work best for your business, if you don’t use one already. Both solutions offer a free trial, which is a simple and cost-free way to get to know the software.
For now, the Making Tax Digital process is starting off with Making Tax Digital for VAT in April 2019. A few years down the line, it’ll be rolled out for other UK taxes, such as income tax and corporation tax.
Here are a number of handy resources for you to learn more: