The shift to digital has been a key aspect of life within the last decade, TV, Radio and now Tax. Making Tax Digital is a key part of the government’s plans to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.

Everyone now has their own personalised digital tax account which are regularly expanded and improved. By modernising the tax system, it will make it more effective, more efficient and easier for customers to comply with. There is widespread agreement that Making Tax Digital is the right approach for the future. Although time has been adapted to allow for businesses to have time to adapt to the new system.

The following benefits will be apparent after making tax digital:

• Better use of information:
  Easier for customers to see the information the HMRC holds and check their details at any time.
• Tax in real time:
  HMRC collect and process information affecting tax as close to real time as possible, to help prevent errors and stop tax due or repayments owed building up.
• A single financial account:
  by 2020 customers will be able to see a comprehensive financial picture in their digital account. Just like they can with online banking.
• Interacting digitally with customers:
  Customers and their agents will be able to interact with HMRC digitally and at a time to suit them. They already have access to a digital account which will present them with an increasingly personalised picture of their tax affairs along with prompts, advice and support through webchat and messaging. Digital record keeping software will be linked directly to HMRC systems, allowing customers to send and receive any information directly from their software.