Far from being the end goal, Making Tax Digital for VAT is the first step in the digitalisation of the tax regime. It’s evolved from HMRC’s desire to increase tax revenues and reduce tax evasion which, since 2016, has seen a wave of local and international reporting obligations and demands for increased tax transparency. Digitalisation will ensure tax processes become more efficient and accurate, helping the tax authority to reduce the margin for error and shrink the tax gap, but it also holds gains for the business.
The increased regulatory burden created by HMRC has seen resources stretched and Chief Financial Officers seek to do more with the same resource. Traditional manual approaches have struggled to cope with the scale of the challenge, forcing businesses to embrace technology to automate processes, identify areas for improvement and increase efficiency. But adoption has been piecemeal, posing a problem for HMRC.
Tax Systems is a leading specialist in corporation tax technology & services in the UK & Ireland. Their solutions automate the end-to-end compliance process and reduce operational risks so that expert professionals are able to focus on delivering more value to their business or clients. As of 24th May 2018, MXC Capital Ltd (LON:MXCP) holds a 4% share.
