MTD for accountants and bookkeepers
If you’re an accountant or bookkeeper, then you have probably heard about Making Tax Digital. Make sure you’re up to speed with the latest changes and prepare your customers in plenty of time ahead of the next deadline.
What are the changes?
Some of your customers may already have to comply with Making Tax Digital rules. This depends on their type of business and whether or not they fall under certain MTD compliance criteria.
However, the majority of businesses will need to be Making Tax Digital compliant over the next few years. It is best to prepare your practice, and most importantly, to prepare your customers for the changes ahead. This means getting your customers to grips with the following admin and finance process changes:
- Electronic accounts, more typically known as digital documents and record keeping
- Making regular (if not real-time) document and finance submissions
- Making digital tax submissions using Making Tax Digital compliant software
When are the changes coming into place?
Depending on the customers’ type of business, depends on their need to comply with Making Tax Digital rules.
HMRC launched MTD back in 2019 for businesses above the £85,000 VAT threshold. As the tax years continued, more and more businesses were added to the MTD list, with smaller and self-employed businesses needing to comply in just a few years.
Take a look at the Making Tax Digital timeline to understand the upcoming deadlines and when these will apply to your customer base.
Preparing your customers
As your customers’ strategic financial adviser, they will turn to you to understand Making Tax Digital's rules and requirements.
Use Making Tax Digital as a way to start conversations with your customers, letting your customers know the changes and processes ahead of their deadline.
Not only will this reduce the stress of any changes months before the deadline takes place, but you will strengthen your customer relationships and show your customers that your firm is their trusted expert.
Using Making Tax Digital to your firm's advantage
Get closer to your customers
Start the conversation now and show your customers you’re not there for data-inputting and sorting out documents, but you’re a trusted adviser helping their business grow.
Increase business productivity
Reduced data-inputting, reduced time chasing customer documents and overall improved document accuracy. Increase how your firm spends your hours and redirect staff to more valuable business areas.
Get ahead of your competitors
Be proactive and ahead of your competitors by discussing Making Tax Digital with your customers right away. Show your customers you’re there for their interests and to strategically guide them.
Increase your customer base
Not everyone will understand Making Tax Digital and why should they? That’s your job. With new deadlines and requirements approaching, reach out to businesses that will need to comply and show what your firm's services and expertise can do for them.