The first phase of HMRC’s Making Tax Digital (MTD) initiative has already begun and will continue to be rolled out over the coming years. Eventually, paper records will no longer be accepted by HMRC, making it essential that small businesses and those who are self-employed adapt.
Everything is going paperless these days – and that includes your taxes.
What is MTD?
MTD is HMRC’s plan to modernise the tax system. By going digital, it is hoped that tax will become easier than ever for self-employed people and small businesses as the system goes paperless.
Although MTD was launched in 2019, it will continue to be expanded over the coming years, with more businesses changing to the new, digital system. From April 2022, businesses with a turnover below the £85,000 VAT threshold will begin using MTD, and the following year, Self Assessment tax payers will also be using the new scheme.
MTD will soon be the new standard for paying your taxes, as all businesses must eventually make the switch.
Why Use Xero Accounting?
Whether you’re preparing for Income Tax or Corporation Tax, it’s time to consider switching to digital. Digital accounting doesn’t just cut out your paper trail – it’ll soon be compulsory.
If you’re used to keeping hold of physical receipts, invoices and bank statements, going paperless may seem daunting. However, digital accounting makes business smoother than ever, with all the information you need stored safely in one place.
There are plenty of bonuses to going digital with your finances. From seeing your accounts presented cleanly and neatly in one place to spending more time with your business thanks to improved efficiency, going digital with your accounting will not only prepare you for the full roll-out of MTD, but help you grow your business and make money in the meantime.
Get Ready to Go Digital with ORIGO
Your business is your passion, not your accounts. With changes to the tax system on the way, it’s more important than ever to understand your finances and prepare to make the switch to digital.
At ORIGO, our services are 100% digital. We’ll help you transition to digital accounting and take the hassle out of your finances. As a Xero ProAdvisor and Bronze Partner, our Founder Sylvia is here to help you navigate Xero and get to grips with digital accounting.
To learn more about making the switch to digital or how working with ORGIO could help your business, explore our services or get in touch today.