London, October 8 2018 Sage (FTSE: SGE), the market leader in cloud business management solutions, today launched a new marketing campaign which will aim to raise awareness of the Government’s new digital tax requirements.
Across TV, radio and social media, Sage’s Ambassador, Peter Jones CBE – the nation’s most recognisable entrepreneur and star of Dragons Den, highlights the benefit of embracing Making Tax Digital (MTD), a first step by HMRC to digitise the nation’s tax system. The campaign will be supported by advice content and comprehensive customer support.
The aim of MTD is to make it easier for businesses to keep track of what they owe and pay the right amount of tax each time they submit a return online. As of April 2019, businesses with a turnover above £85k will have to submit VAT returns through the HMRC gateway using commercial accounting software. MTD will initially focus on VAT returns from VAT-registered businesses, but the plan is to expand the initiative during the next few years.
Sage has highlighted the productivity benefits for businesses of adopting technology and automating business administration. Making Tax Digital will mean that companies will get a real-time view of their tax and will no longer have to provide the same details twice. By reducing manual entry, businesses are less susceptible to errors and mis-reporting.
Peter Jones CBE started his first businesses on Sage software and is an advocate of using technology to reduce the administrative burden.
“Preventing a problem is a lot easier than fixing a problem, especially when it comes to taxes,” comments Peter Jones CBE. “I’ve always believed that being organised, having all your information in one place and in digital form, is the best way to prevent any issues. Making Tax Digital is an important first step, that businesses should embrace, to reduce errors and streamline a vital business process.”
Drawing on 38 years of supporting business to comply with legislation, Sage is helping all of its UKI customers to be MTD ready. As well as providing technology that has been tested with HMRC as part of its pilot process, Sage provides free information for all businesses on its MTD Hub and will be there for all customers with always-on customer support.
“Making Tax Digital will help businesses and their agents devote more time and attention to maximising business opportunities, encouraging growth and fostering good financial planning,” comments Theresa Middleton, Programme Director, Making Tax Digital, HMRC. “It’s part of fundamental changes HMRC is making to the way the tax system works to make it more effective, efficient and easier for taxpayers to get their tax right. We are working closely with software suppliers to ensure a smooth transition for businesses and their agents.”
Through toolkits, webinars and online resources, Sage is working closely with its partners and accountant community, giving them the tools to educate their own clients on the importance of MTD.
“We’ve been supporting businesses dealing with change for nearly four decades, and we want to help raise awareness of MTD and support our customers to be compliant, because, in the end, we think this will deliver huge benefits for them. Our research has found that by moving to digital accounting, businesses can save £17,000 per year, the equivalent to getting 27.6 days a year back to focus on revenue-generating activities,” said Sabby Gill, managing director, UK & Ireland, Sage. “Making Tax Digital is the first, but an important step by government, to digitise the nation’s tax system, it’s vital that the business leaders of the UK are aware and are on the right path to meet April’s deadline.
“Sage is investing in educating and raising awareness of MTD, alongside Peter Jones, to ensure a smooth path that helps businesses across the country to embrace digitisation and thrive.”
The Sage and Peter Jones, Making Tax Digital campaign will feature across platforms from October 8th. To find out more about Making Tax Digital, please visit https://www.sage.com/en-ie/making-tax-digital/