MAKING TAX DIGITAL DURING COVID-19May 26 2020
Three things that have made lockdown manageable: my daily walk, many chocolate biscuits, and the cloud. No, not the cloud I watch float by my window as I daydream about my next getaway, but cloud accounting.
It’s tough to comprehend what the past few months would have consisted of if the movement towards making tax digital hadn’t already launched. If the Coronavirus crisis had occurred just 5 or 6 years ago, it would have been an unthinkable challenge. Although our world has pressed pause, our ability to support our clients hasn’t, and that is with credit to cloud-based software solutions such as FreeAgent, QuickBooks, Xero and Microsoft Teams.
As of April 2019, VAT registered businesses with a turnover in excess of the registration threshold have been required to submit their VAT returns via digital software. As a fully accredited QuickBooks, FreeAgent and Xero accountancy firm, we have been advocates for digital transformation in accountancy.
The way that we operate using digital solutions has made it relatively easy to adapt to the transition from office to home. Cloud accounting software has meant we haven’t had to be situated locally and can liaise and collaborate with our clients digitally. Through virtual meetings on Microsoft Teams and the use of cloud-based solutions, our clients have had peace of mind that we are still here to help, even if that’s from our kitchen table.
We have frequently discussed the benefit of Making Tax Digital over recent years, and this situation is just another example it’s importance. You can read about how we helped St Johnstone FC transition to QuickBooks here.
HMRC still plan to mandate by the end of the 2020/21 tax year, all businesses will be required to use a fully digital based tax system to submit quarterly business information to HMRC. If you would like to find out more about how we can help your company make tax digital and also allow your finance to become digital and mobile, please get in touch with a member of our team.