Self-assessment is a key part of every business, as HMRC uses it to calculate the tax on your income.
But while essential it’s also incredibly time-consuming with most businesses choosing to outsource the responsibility.
Digital tools and bookkeeping software aim to nullify the hassle for individuals and small businesses.
How does software help with self-assessment?
Digital processes reduce the time required to complete your self-assessment while simultaneously lowering the cost for your business as it can now be run in house as opposed to outsourcing.
Software can help with reporting functionality, quickly giving you the figures required for your self-assessment form.
Additionally, you’re able to upload invoices and receipts each month, streamlining the process of going through your year’s financial activity while also making the self-assessment easier and more accurate.
What are the benefits of making your self-assessment digital?
By making your self-assessment digital you can unlock a variety of benefits, including:
Manage cashflow: For small businesses, the new digital processes will allow for enhanced cashflow management, especially for those who experience seasonality trends. The added monitoring that digital functionality enables, encourages business owners to assess their performance on a more regular basis.
Meet HMRC’s requirements: By linking your bank account to your digital tax account, not only are you able to satisfy your HMRC requirements, but you also receive any rebates will very quickly back from HMRC.
Reduce the risk of penalties: Paying all your taxes (VAT, National Insurance, Corporation Tax, Income Tax) is significantly easier reducing the risk of a mistake and fine.
Self-assessment in KashFlow
KashFlow provides a simple platform that streamlines self-assessment processes by offering reporting and cashflow management functionality.