For small businesses navigating the Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) initiative, tax returns can be complex.
The new HM Revenue & Customs (HMRC) app seeks to make the process easier, however.
The digital tool marks a significant shift away from traditional, paper-based methods, heralding a new era of streamlined tax processes.
Here are just some of the reasons you should start using the new HMRC app.
The first step to digital tax transformation
The HMRC app is more than just a payment gateway - it's a comprehensive platform for managing various tax-related tasks with ease and it can be accessed almost anywhere.
Its increasing popularity is evident from the £121 million in tax payments processed through the app since April 2023.
This surge in usage not only demonstrates the app’s reliability and user-friendliness but also indicates a broader movement towards digital solutions in tax administration.
Key features of the HMRC app for ITSA
- Enhanced accuracy: The app reduces the likelihood of errors in tax calculations, promoting accuracy.
- Real-time access to financial data: It provides up-to-date financial information, crucial for effective business decision-making.
- Simplified tax management: The app's user-friendly interface makes recording and submitting tax information more straightforward.
- Regulatory compliance: Using the app helps in adhering to MTD regulations, thus avoiding potential penalties.
- Improved financial planning: Regular updates on tax liabilities facilitate better management of business cash flow.
Why should you use the HMRC app?
The app’s significance in the current tax landscape cannot be overstated.
With the Self-Assessment deadline on 31 January 2024 fast approaching, the HMRC app makes the process easier.
Leveraging the capabilities of the app is essential for small businesses looking to stay ahead in the digital tax transition.
Its role in ensuring compliance with MTD for ITSA (set to come into force from April 2026) is invaluable, providing businesses with a reliable and efficient means of managing their tax obligations.
The app not only streamlines tax management but also offers peace of mind by ensuring that businesses are on track with their tax responsibilities.
To fully harness the benefits of the HMRC app, small businesses may seek guidance from knowledgeable experts like accountancy professionals.
Tax experts within accountancy firms can provide comprehensive support and advice on using the HMRC app effectively.
For a detailed walkthrough of the HMRC app and its features, or for any queries related to digital tax management, please contact our team of specialists.