HMRC’s phone-based system already beaten by accounting software

Millions of small business owners, landlords and freelancers are now faced with the prospect of having to submit four tax returns each year in order to meet HMRC requirements. So what can you do to get help and get ahead of this system?

Government attempts to relieve confusion, but support is insufficient

The government has tried to mitigate the potential mountains of red tape by moving the tax return process online. However, with some self-employed workers unable to reliably access the internet, and many more baffled by HMRC’s online portal, the government has been forced to add a supplementary phone-based system.

So far, this has done little to appease critics, who point out that HMRC failed to answer over 18m phone calls in a one-year period from summer 2014, equivalent to 25% of total call traffic.

Such eleventh-hour confusion has caused delays and distress, all without getting to the root of the issue. The new phone-based system is already outdated in technological terms and gives little support for submitting a tax return that small business owners struggle with.

Get ahead with online accounting software

Unlike the taxman’s online system, accounting software packages such as Xero are simple and intuitive to use, and will accrue financial information in real-time to prevent a last-minute rush.

Receipts, invoices and other accounting documents can all be uploaded using just a smartphone. And, perhaps most importantly, the system can be made accessible to your accountant, who can work behind the scenes to ensure that you’re prepared for every tax return deadline without taking time out of your daily schedule.

To find out more about how accounting software could help streamline your tax return submissions, call on the experts at 3 Wise Bears today.