Making Tax Digital: Is Your Business at Risk of Being Penalized?

Making Tax Digital: Is Your Business at Risk of Being Penalized?

Lee Murphy

Owner at Pandle

Views 401

Making Tax Digital: Is Your Business at Risk of Being Penalized?

27.10.2016 08:45 am

Small business owners might not be aware but Making Tax Digital is going to mean that they have to keep on top of their finances much more regularly and likely pay tax on a much more regular basis. Gone will be the days when a new business can start and worry about the accounting and tax a year or so later. On the downside it’s an extra burden on time and potentially money early in the business’ life but on the upside it should give business owners more up to date financial data leading to better informed decisions early on.

Rather than waiting to the end of the year to get your accounts in order, SMEs need to start now, especially considering that the transfer over to accounting software may take some time to complete and could even break the deadline if submitted too late.

Business owners may view Making Tax Digital as a means to filing their own accounts and taxes through accounting software like Pandle. However, an easy route to submission does not necessarily mean that the submissions will be accurate. It’s still important for small businesses to use an advisor to ensure everything is being completed correctly, especially considering that HMRC are able to charge taxpayers up to an additional 100% on their taxes should they considered any mistakes made as ‘deliberate’.

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