Indirect taxes can be some of the most perplexing to calculate correctly the first time and filed correctly — especially when paired with HMRC’s Making Tax Digital (MTD) mandates for digital record keeping and reporting. While intended to simplify VAT across the EU, the MTD initiative has contributed to an additional amount of confusion around rates and payment responsibilities, as well as differing requirements specific to individual EU countries. Determining when tax needs to be applied, how much, and when and how to report these taxes can be daunting. Understanding the basics of VAT determi ..read more

The complexities of understanding and managing indirect taxes, when doing business within the UK, can be daunting. In addition to a plethora of ever-evolving domestic regulations and requirements complicated by Brexit, businesses in the UK must also consider challenges in complex areas such as customs and exports. Compliance becomes more challenging every year, with tax authorities demanding more information more frequently. To be compliant, small businesses and corporations alike are required to meet reporting obligations that have widely varying requirements and complexities depending on whe ..read more

Businesses must innovate and adapt to the changing indirect tax landscape to stay competitive. Corporate tax departments are using technology increasingly as a strategic partner to address these issues. Insight on how indirect tax departments intend to use technology to transform their operations can be found in a recent study conducted by the Thomson Reuters Institute. Accepting the change brought about by technology The 2024 report Challenges and Opportunities for Indirect Tax and Compliance draws attention to the changes that indirect tax departments are going through as ..read more

The digital transformation of tax, accounting, and financial management is no longer optional. This transformation is most visible in the adoption of electronic invoicing (e-invoicing), a critical shift reshaping the financial landscape of businesses worldwide. The rise of e-invoicing According to a recent study run in partnership with Accountancy Age, 134 organisations were surveyed, 83.8% of which had offices in the UK. The results showed that a large portion of finance teams are shifting towards digital methods, particularly e-invoicing. This shift is not merely a trend but a response ..read more

At its most basic level, a VAT —or value-added tax — is a type of consumption tax charged on items that people buy. Known also as an indirect tax because businesses collect it for the UK government. Businesses must register for VAT if their VAT-taxable turnover is more than £85,000. They can also choose to register if their turnover is less than £85,000. As with any tax, there are a variety of factors that can impact your compliance with tax regulations surrounding VAT. Some of those are outlined below.   How does it work?  When you are a VAT-registered business, you must charge VAT ..read more

People who purchase software rarely get to talk to the product’s developers about the development process or the features and updates users can expect in future iterations of the product. But that’s precisely what happens at the Thomson Reuters annual Synergy conference, where product developers, software engineers, and other representatives from the company gather with users to share knowledge, discuss industry trends, listen to feedback, and peer into the future.   ___________________________________________________________________________________________ At the Synergy event,  ..read more

The HMRC’s Making Tax Digital (MTD) mandate was designed to simplify and expedite tax reporting, with advantages, according to their gov.uk website that include:   Making it easier for individuals and businesses to get their taxes right Allowing businesses to integrate tax management with a range of business processes through software Contributing to wider productivity gains for businesses by encouraging digitalisation Improving accuracy of digital records Enabling digital records to be sent directly to HMRC   Regarding companies whose products are subject to value added tax (VAT ..read more

Auditors are facing increased pressure every day to deliver high-quality audits in a timely and cost-effective manner. But challenges are everywhere. The regulatory environment is in a state of constant flux, making it imperative for auditors to meet evolving standards. The sheer volume of data that requires meticulous examination grows exponentially, adding to the complexity of the auditing process. Traditional audit methods, once considered adequate, are now overshadowed by the rapid advancements in technology and the intricate nature of financial reporting. Consequently, the demand for more ..read more

The mounting stress experienced by tax professionals related to the tax provision process is a double-edged sword. It can cause anxiety, but may also present tremendous opportunities, according to panelists for the Thomson Reuters webinar: _____________________________________________________________________________________________ “From compliance necessity to strategic advantage: How can you master the tax provision process?” _____________________________________________________________________________________________ “The tax profession, overall, is facing some significant change ..read more

The pace of change experienced by today’s tax departments feels unprecedented. And, amid this transformation, tax departments are facing a host of challenges, including growing complexity, talent shortages, and financial constraints. Yet, as challenging as the rapid pace of change may be, it doesn’t relieve tax firms of the responsibility to prepare appropriately. The good news is that choosing the right technology solutions can help firms successfully navigate these choppy waters and gain a competitive advantage. Pressure mounting due to technological and regulatory changes The tax industry i ..read more