HMRC’s move to digital accounting is without doubt the biggest shake-up to the tax industry in a generation – yet many bookkeepers and most people who file tax returns remain unaware of the changes and what their implications are.
So how will making tax digital affect bookkeepers – and what do you need to tell your clients?
‘Making tax digital is effectively HMRC ensuring that tax accounting finally moves into the 21st century,’ says Brian Palmer, Tax Policy Adviser at AAT. ‘The clearest comparison is with online banking; it’s moving tax into an environment where you can see tax information in real time.’
That goal is still some time away, but for most businesses, the move to quarterly reporting is just around the corner – the rollout begins next April. Despite this timescale, there is still confusion about how extensive the changes will be. ‘Originally HMRC wanted everybody to capture and store all purchase and expense invoices digitally; but they have stepped back from that requirement and now are just asking for transactions to be recorded using the MTD-compliant software,’ Palmer explains. ‘If clients wish they will still be able to handle, issue and store paper documents. HMRC just requires that they do their bookkeeping electronically.’
The second question mark was over whether spreadsheets would still be allowed; ‘in fact they will still be acceptable, and as bookkeeper you will just need to link your spreadsheet data with HMRC’s systems using an MTD-compliant interface.’
Networking plays an important role in building a personal brand, though it’s not something that comes naturally to us all. Here are our three top rated posts, crammed full of lots of useful nuggets and insights for making the most of your networking opportunities and building your professional brand.
Our first pick offers some valuable advice to help finance professionals leverage their time at industry events. Whether you’re attending new or the same events year on year, it’s important that you treat each one as a new opportunity to grow your network and build your reputation. Here are some useful pointers for you to consider when attending your next event:
By Andrew Harbison, CA Today Contacts book: Although you will have a digital version of this in your phone, a physical book won’t run out of memory or power. Business cards: Make sure they look as professional as you do. Take as much care choosing the design as you would picking out your outfit for the event.