From April 2019 Vat registered business will be required to file quarterly financial information with HM Revenue and Customs. From April 2019 this will apply to smaller businesses and Companies will be required to start filing from April 2020. This is going to further increase the burden on businesses. We have already seen Real Time Information for PAYE and Auto Enrolment effectively add to tax payer’s duties as unpaid tax collectors for the Government. Digital Accounts are going to be a further ‘headache’ that we can help you to deal with, saving you time and money. We can file this information quarterly for you – the advantage of internet-based technology means that accounting information may be accessible to both you and us at the same time via your accounting software.
One side effect of Digital Accounts will be that HM Revenue and Customs will use this information to investigate anomalies between similar businesses in a similar area. They will have a huge amount of data to sift through and be able to review when salaries are in fact paid, dividends paid and directors or staff loans repaid. This is a worry if your records contain errors or if you make a mistake it could lead to a tax investigation.
At the same time the Government has been asking all UK banks to tie up every bank account with a business by tax reference number, this is going to put a lot of pressure on businesses who have not declared all bank accounts in the past. If you want to know more about Digital Accounts please contact our office in Exeter.