Letters: Digital VAT can be an opportunity
[Re: Digitalisation of VAT for small businesses, April 1]
The next phase of Making Tax Digital (MTD) for VAT came into force on Friday, and it’s fair to say that not every small business will have welcomed it with open arms. Already facing a laundry list of challenges, they now need to comply with HMRC’s digital tax regulation. This requires VAT-registered businesses with taxable turnover under £85,000 to submit returns digitally using government-approved software.
While the digitisation of tax may sound like yet another hurdle to overcome, the move away from paper-based records also represents a huge opportunity for business owners to cast aside onerous manual processes and become more efficient by adopting digital tools. Even so, the change doesn’t have to be undergone alone.
Small businesses can get in touch with their accountants who can provide vital counsel on both the process itself and digital adoption. The government has also provided plenty of useful resources on VAT record keeping on its website.
Trepidation around MTD is understandable, but delaying efforts to comply can result in unwanted fines, and may well represent a failure to seize an opportunity to drive digital adoption that benefits small businesses and their customers.
Alexander von Schirmeister