2017-02-23 07:54:16 Making Tax Digital English Making Tax Digital is only a few years away so to get started, you'll need to get going. Guest blogger Mark Wickersham tells you why it's... https://djnx69zjp3mvw.cloudfront.net/wp-content/uploads/2017/02/08215942/Business-trends.jpg Making Tax Digital Making Tax Digital: Time is running out

Making Tax Digital: Time is running out

1 min read

There isn’t long left for the accounting profession

There’s a new set of proposals from the Government which will have a major impact on our profession over the next few years.

They call it ‘Making Tax Digital.

Of course we don’t yet know exactly how Making Tax Digital works, because as you know, the Government does have a habit of changing its mind (just look at the introduction of Automatic Enrolment).  This is the essence of what has been said:

  • It is likely to apply to businesses with turnover above £10,000 (which will probably be all of your clients),
  • Although there may be a few limited exemptions, businesses will have to use digital tools (such as QuickBooks Online) for their accounting system,
  • Businesses will send summary data to HM Revenue & Customs (HMRC) about their business each quarter (and this is why they will need to go digital),
  • HMRC has confirmed they will not be providing their own bookkeeping/accounting software. This means your clients (with your help) will have to sort out their own cloud accounting solution, and
  • It is planned to start in 2020, but it is best to be prepared beforehand!

That’s a very quick overview of Making Tax Digital.  HMRC has published its consultation document and you should make sure you take the time to read them.

A wonderful marketing campaign

 So, this is essentially what our marketing department has done.  They are telling UK businesses they must move to a cloud accounting system.  And of course, that means more work for you.

Are you ready for this opportunity?  Time is running out and firms that get ready to tap into this marketing opportunity that Making Tax Digital brings will win new clients.

So here’s what you need to do:

  • Create your strategy, e.g. how are you going to ensure you have the resources to do the data migration work
  • Get your marketing collateral together ready to start promoting this to both your clients and prospective clients
  • Package up your cloud set up solution
  • Create your value pricing system so you price this opportunity the right way and make it highly profitable

I’ll be writing a series of blog posts on these topics (to be published by QuickBooks) very soon.

And of course, Intuit has some great training, support and resources for QuickBooks ProAdvisors in these areas.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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