Making Tax Digital is an accountancy revolution. It is one of the largest and most significant changes to tax legislation. It already had a major impact on accountants and their clients. But it has a negative stigma. HMRC’s decision to postpone the next phase at the peak of the pandemic was welcomed within the Accountancy profession.
If MTD’s reputation does not change in the lead up to 2024, they risk dangerous consequences. With HMRC continuing to delay the mandates for this, they risk a slower digitization. Delays to MTD are par for the course. HMRC have delayed the mandate. Accountants now have two years. Accountants have a critical role to play in building trust around MTD. Switching to digital records is too much hassle. Clients have stuck to traditional processes to manage their books and tax.
Accountants need to reassure their clients that MTD is no hassle. Increased visibility and fewer costly mistakes made through automated systems. Transparency is key for accountants. This is for effective communication. And that benefits the MTD and the expectations of their clients. HMRC need to publicise MTD for Income Tax Self-Assessment across the UK. Robust practice management systems are a great tool. They enable practices to systemise regular contact. But automation is critical. It enables accountants to help their clients adapt to MTD. Online bookkeeping tools are an effective way for business owners. The records are saved on a cloud-based platform.
Specialist tax compliance software streamlines processes like tax returns if done manually can be extremely time-consuming. MTD is the future of accountancy. Accountants should now to step up. So that they can re-establish MTD. For this clear communication and automation are much needed.
