THE farming industry has seen massive technological developments over the last few years, from cows being milked by robots to tractors driving themselves.

Another change is on the horizon which will affect most farmers, but many are unaware of it.

The change will be compulsory if your turnover or rental income is over £10,000 and will be rolled out in just over a year.

Following on from the article in the Gazette last week by my colleague Paul Aplin, Making Tax Digital is the main part of the Government's plan for business owners and individuals to keep on top of their tax affairs.

The hope is that the initiative will make tax administration more efficient and effective for both the taxpayer and H M Revenue Customs.

Each taxpayer will have a digital tax account and be required to submit data each quarter about their business.

A year end declaration and year end accounts will still be required to ensure the quarterly returns are reconciled and accounting adjustments are made.

The current tax payment dates will remain unchanged, however voluntary payments can be made throughout the year towards tax liabilities.

To submit the data to HMRC records will need to be kept using approved apps and accounting software.

The most concerning fact is that many farming businesses do not have the software in place to cope with these new developments.

If you keep handwritten records or spreadsheets then you will have to change what you do.

A C Mole and Sons have been at the forefront of advances in accounting and tax technology for decades, having been the first firm in the UK to submit an electronic tax return in 1997.

We are therefore well placed to advise on solutions for Making Tax Digital and we offer a range of software packages and cloud accounting services.

These forthcoming changes for businesses will be dramatic and I recommended that you seek assistance at the earliest opportunity.

  • Rob Selley ACCA is an associate and farming specialist with A C Mole & Sons.

He can be contacted on 01823 624450 or RSelley@acmole.co.uk

You can follow him on Twitter at @RobAtACMole