Local businesses warned to be ready for 'biggest tax change in a generation'
LOCAL businesses have been urged to make preparations for the biggest change to the tax system in a generation, due to come into effect next year.
A new digital method of tax collection and administration known as 'Making Tax Digital' is due to be introduced in April, requiring businesses with turnover above the VAT threshold to file quarterly tax returns online.
Ahead of the change Belfast-based Exchange Accountants has called on Northern Ireland businesses to start making preparations before it is too late .
Gary Laverty, accounts director at Exchange Accountants said sound preparation can ensure a simple transition.
“Making Tax Digital is without doubt the most significant change to the UK tax system in a generation and will require a lot of preparation in terms of training and software but it doesn’t need to be a difficult process."
“We know that going forward, businesses and individuals will have to obtain some form of digital software for record keeping so we are calling on all those affected to start preparing for the move now before they’re left behind,” Mr Laverty said.
HMRC has stated that the new tax system will reduce the administrative burden for businesses and increase the tax payable to the exchequer by reducing the number of errors – an important step in closing an estimated £35bn tax gap.
Mr Laverty, whose company was an earlier adopter of digital accounting, believes the substantial change will be beneficial for businesses in Northern Ireland.
“The need to embrace digital accounting that's been necessitated by Making Tax Digital will ultimately be a positive for most businesses,” he added.
Established in 2011 with offices on the Linfield Road, Exchange Accountants provides accountancy services and tax advice to a wide variety of companies and individuals based in Northern Ireland and the Republic.