Digital Record Keeping, Prepare For Making Tax Digital [MTD] Part2
After launch of Making Tax Digital agent’s will be able to link their clients’ records directly to practice software using some of these tools, making it easier to access an accurate and up-to-date overview of the business when required. HMRC is hearing from a number of agents who have already transitioned their clients to digital record keeping that this, in combination with time saved from correcting avoidable errors, is allowing them to spend more time on giving higher value advice to their clients.
Hmrc said they appreciate that some of agent’s clients may find the process of moving to digital record keeping more difficult than others do, and becoming used to new processes can increase the workload for both the agent and the business in the short term. However small business owners who have made the change to digital record-keeping have commented it has enabled them to run their businesses more effectively.
If agents use commercial practice software, they might want to speak to their provider to find out when it will be MTD compatible and which business record keeping tools will integrate with the software.