It has always been one of the HMRC’s desires and plans to take the UK’s tax system into a whole new level. This refers to the digitisation and absolute innovation of the tax system – which is then known as ‘tax return’.
The aspiration and simple planning turn into an official initiative not only by the HMRC but the UK government as well. The initiative namely Making Tax Digital is given particular expectations such as being the hope to put the current tax administration in one of the most digitally advanced tax administrations globally.
And just recently, dating April 1, 2019, the official operation of the Making Tax Digital as the UK’s new and digitised tax system took place. However, this is merely the first phase of MTD’s implementation.
Now, what are the expectations that are lying ahead of MTD’s journey? Find out how the Making Tax Digital for VAT will work on the UK’s taxation industry through this beneficial read.
Making Tax Digital for VAT: Delivers Almost to Absolute Zero Errors
The taxpayers will now be complying with their tax obligations under the new system and its demands. Since Making Tax Digital for VAT is a digitised system, it ensures and delivers almost to absolute zero errors in the process of compliance.
This may sound unmanageable but with the Making Tax Digital for VAT together with its advanced and unique features, the probable errors will be easily detected and highly be avoided. This is a great advantage in the part of the agents who are working behind the curtain of digital tax compliance.
Moreover, the Making Tax Digital for VAT eradicates the habit of going through the previous receipts, client’s transactions, and piles of papers only to find out where the errors are coming from. The mystery of errors and/or miscalculations will no longer be prolonged.
Making Tax Digital for VAT: Workforces’ Effective Productivity-booster
It’s evident how complex and risky it is to be part of the departments like finance, marketing, and more that are responsible for money-related duties. There is the obvious presence of stress, pressure, self-doubt, and lack of productivity especially if everybody’s working manually.
In the context and case of the United Kingdom’s corporate and taxation world, businesses that are covered in the present VAT threshold of £85,000, are now obligated to submit their tax records in digital format. With that, the workforces who are working on money-related tasks will be one of the immediate beneficiaries of the newly implemented system.
In relation to what has been tackled in the previous key point, the workforces who are responsible for the processes concerning tax duties will no longer face more sleepless and dreadful days and nights at work. Why? Since errors and miscalculations will now be easily tracked down, the workforces’ productivity will no longer be affected.
In great fact, the Making Tax Digital increases the productivity of the employees working on money or tax-related duties since the processes are now made more efficient, more effective and simpler.
Making Tax Digital for VAT: A Wakeup Call for Innovation
In a broader understanding and analysation regarding the Making Tax Digital for VAT’s official implementation, it can definitely be considered as a wakeup call for innovation. It can be a call for change and a call for a more advanced system not only in the taxation industry but in general.
The MTD for VAT may not be well-recognised and well-appreciated for now, but time will come that great progress in the UK’s tax administration and the UK businesses will be displayed before the eyes of the people of the world.
Making Tax Digital for VAT: Conclusion
The HMRC with the UK government in its back is now working on with their very best to put the Making Tax Digital for VAT into a notable success. Since it’s only the first phase of the digitised tax system, possible changes are highly foreseen in the UK’s business and taxation world.
Be part of the UK and Making Tax Digital for VAT’s journey and witness how the remarkable initiative will work on the UK’s taxation platform.
AUTHOR BIO:
Kath Ramirez embraced the dream of being a writer since she was in 4th grade. She took it seriously and she’s now a graduate of AB Journalism and a current writer to Australian and United Kingdom-based companies. Aside from writing, Kath also keeps herself busy spending time with her family, cherishing the role of a mom to 3 dogs and a puppy, reading random books, and diving into the world of photography. She’s not even a pro to whatever she’s engaged into right now, but one thing she knows, she’s happy and that’s more than enough.
