HMRC’s rollout of Making Tax Digital (MTD) has been a long time in the making. This marks a large-scale shift in how businesses will manage their finances, with a transition to being digital-first. Rather than using a spreadsheet or paper, and submitting returns at the end of the year, business owners will instead work online and submit details on a quarterly basis.

We’ve spoken before about the massive opportunity this represents. Working digital-first means having access to immediate and accurate financial information. It means avoiding the hassle of that last-minute annual scramble. And above all, it means being in the position to strategise, save, and seize opportunities as they come along.

The MTD rollout was due to begin in April 2024, but – surprise, surprise – this date has been pushed back yet again. Now, it’s not due to kick in until April 2026.

But this doesn’t mean you should take your foot off the accelerator. It might seem like businesses have “won” an extra two years, but please don’t let this influence how you prioritise getting your finances in good shape. In short, don’t let HMRC set the pace.

After all, HMRC is hardly the paragon of efficiency. You may well have received those relentless letters chasing the £1.92 of tax you owe, but if you’ve been lucky enough to receive a repayment from them, you’ll know that it can take weeks – or even months – for it to be processed. As accountants, we have a dedicated line that we can call to discuss our clients’ tax affairs, but HMRC has closed this down entirely for two months as it can’t cope with demand.

There are so many good reasons to continue becoming MTD-ready, and no need to wait until it’s enforced. As we’ve already said, having digital, real-time data brings a wealth of benefits for your business.

There’s no denying that for most of us, life is busy and each day feels like an obstacle course of tasks that we have to navigate. It’s all too easy to fall into the trap of prioritising non-important tasks, just because there’s an immediate deadline. It’s human nature, but it means that the important but non-urgent things are invariably pushed into the future. In fact, this exact battle is probably what HMRC is facing right now, and what has prompted its most recent MTD delay.

Having good financial visibility in place is very important, but it might not seem urgent. However, what if I were to give you a deadline and a tangible consequence? For instance, ‘if you don’t get solid financial reporting set up by 30th June, you’ll have to write me a cheque for £50,000.’ It’s a safe bet that the risk of losing this much money would tip this task into the ‘urgent’ category. After all, there’s so much more that you could do with it; it could be your marketing budget for the year, or even a good number of nice holidays.

This £50,000 is the tax Hive could save you. Now, obviously I’m not going to be asking you for a cheque, and this makes my point easy to dismiss. Again, this is human nature: we’re hardwired to avoid loss more than we seek gain. However, if you don’t save the money at this stage, you will be writing a cheque to HMRC – the only difference is that you’ll be doing so next year. Because the tax bill is far removed from your present situation, it’s hard to feel that urgency, but that doesn’t mean it’s not there.

For us to help you hang onto your hard-earned money, you really do need to bring your finances into the digital realm. If you act now, I can guarantee that your future self will thank you. And, if you’d rather not take my word for it, just read our testimonials from clients who have followed this advice and are already reaping the rewards.

If you’d like help getting solid financial visibility, just get in touch.