A quarter of small businesses admit to losing an average of 10 hours per week on administrative tasks, according to a new YouGov poll.
Commissioned by HM Revenue and Customs (HMRC), the poll also found that 92% of senior decision makers personally bank online, almost two thirds (62%) support all tax accounts being digitalised and one in four (25%) working in a small business are spending over 10 hours a week on administrative tasks.
Making Tax Digital
The results of the poll have been released as HMRC embarks on its Making Tax Digital initiative, which it hopes will see the UK become one of the most digitally advanced tax systems in the world. HMRC is initially starting with VAT but has made it clear it is its intention to broaden MTD to other taxes.
For VAT periods starting on or after 1st April 2019, VAT-registered businesses with taxable turnover above the VAT threshold will need to keep their records digitally and submit their VAT return using compatible software using MTD-compliant software.
Mel Stride, Financial Secretary to the Treasury, said: “Anything that helps businesses to manage their tax more easily so they can focus on what they do best – innovating, expanding, and creating jobs and profits – is what every modern business needs. In a world where customers and suppliers are already banking, paying bills and shopping online, it makes sense for HMRC and businesses to bring tax affairs fully into the 21st century.
“Going digital with business records and taxes is the next step to businesses getting more control over their business and their finances.”
If you are battling with your administrative and bookkeeping burden, perhaps it is time to review your processes and see if you could harness technology to save you time.
How can I reduce the time I spend on administrative tasks?
At TaxAssist Accountants, we use the following cloud accounting systems such as QuickBooks. Using an online bookkeeping product can have many advantages, such as:
- Lets you produce and email invoices to your customers and clients
- Makes receiving payments from your customers easier for them and you
- Real time information about your business’ finances
- Safer storage of your information with frequent automatic back-ups in the cloud
We also use Receipt Bank which is a receipt processor; allowing you to snap pictures of your receipts using your smartphone, which Receipt Bank is then able to lift the relevant information off ready to plug into your bookkeeping process. It means transactions can be captured in your bookkeeping records at the click of a button.
If you’re interested in hearing more about the solutions we have available, please feel free to call 0800 0523 555 or use our simple online enquiry form.
By Samantha Skyring FCCA
Last updated June 2019
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.