The move to a digital tax system in the new year will impact tens of thousands of businesses in the region, says the LLEP.
The change will apply to all VAT registered businesses over the VAT threshold of £85,000, affecting up to 40% of businesses in Leicestershire.
HMRC’s Making Tax Digital will replace the current, manual and often time-consuming system in April 2019 and support is available to businesses to make the transition. The new system will help modernise taxes and allow businesses to keep accurate records and benefit from efficiency gains and the visibility of real time information.
Helen Miller, Growth Hub Manager at LLEP Business Gateway, said: “Businesses need to consider the costs of implementing and using new software, training staff and converting the data to digital records in order to be compliant, which could take a couple of months.
“We offer support and advice to Leicester and Leicestershire businesses across a whole range of topics. To help businesses understand more about the new digital tax system we are working in partnership with Haines Watts to deliver a free workshop on “Making Tax Digital – Prepare Your Business For The Changes” on 4th October.
Sanjay Khullar, senior partner at Leicester accountancy firm Haines Watts, said: “The clock is ticking and businesses will reap the rewards earlier if they make the transition sooner. Staff need to be comfortable with the new software and businesses won’t want to move to digital part-way through the tax year.
“Making Tax Digital is good for small businesses looking to grow and Haines Watts is dedicated to delivering the training and support to those transitioning. There is no need to be tech savvy to comply.”
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