Making tax digital delays are costing businesses time and money

Following news that the Treasury has delayed the introduction of a digital personal tax system for another two years, until 2026, small business accountancy expert, Lee Murphy, managing director at The Accountancy Partnership, says, “businesses of all sizes are impacted by these frequent delays, costing everyone time and money.

“Many businesses and their finance departments will have put processes and even software in place to make the switch to digital seamless. But delays to the official introduction could mean that new tech and accounting processes need to be drastically changed or scrapped altogether due to Treasury delays.

“Significant time and money have been invested already by businesses in making sure they’re ready for these changes, and many will feel let down by the Government changing the goalposts again.

“Entrepreneurs should still make the move to digital bookkeeping in good time to make sure they’re familiar with new systems before the change is imposed on them. Digital accounting can be more accurate and save time, freeing you up to run a successful business. Almost two-thirds (63%) of SMEs are already storing their financial records and expenses digitally, according to our own research, which is positive to see.

“We’re ready for the switch to totally digital personal tax system and we hope there are no further delays beyond the new 2026 date.”