2 minute read
The Digital Switchover is just the beginning
Technology is ever-changing. The 2025 digital switchover is not the end of this process – it’s not even the beginning. Alistair Ferris, director of accountancy fi rm Torr Waterfi eld,
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told us why this is not the end WORDS BY TOM YOUNG
The switch from analogue TV to digital was an early example of the digital transformation our lives are undertaking, while the recent ‘Making Tax Digital’ scheme directly aff ects businesses.
If you’re intimidated by the notion of the Digital Switchover and how it will aff ect your business, you might be reassured to know that other businesses have already been through similar changes, and there is cause for optimism.
“It’s a chance to make your business more effi cient,” says Alistair Ferris, director of accountants Torr Waterfi eld. “When Making Tax Digital arrived, we took it as an opportunity to update all our processes, as it aff ected our clients’ bookkeeping. We’re big proponents of cloud-based book-keeping software, Xero, and we’ve moved most of our clients onto it now. It allows us to provide real-time support.
“We have also invested in a digital portal which means that documents can be electronically signed online. It saves time and paper. In the old days, we’d have clients driving over to the offi ce at 16:45 on January 31 to sign their tax return, and then we’d have to drive the paper copies down to the HMRC offi ce. Now, they’re all submitted digitally – we must all be saving so much petrol or electric!”
The phoneline switch to fi bre optic also allows for faster communication. Coming off the back of Covid, and with more companies embracing hybrid working, high quality and reliable internet enables this new normal.
“We’ve had fi bre since 2018, and when the pandemic hit, we were able to move 95% of our business services online within 48 hours, with over 50 members of our team having full server access. Microsoft Teams was implemented company-wide and staff communication was uninterrupted. I doubt any of that would’ve been possible with oldstyle copper wiring.”
We know for certain that every business will have to switch to full fi bre by 2025, but it does make sense to get on board early and embrace the technology.
“You might be able to negotiate a better deal now, as installation charges could conceivably increase as we get closer to the cut-off date. Any new system takes time to integrate into your business, so the sooner you start, the sooner you’ll be comfortable with it.”
Alistair suspects that there are bigger changes to come, as the government seeks to design our digital future.
“We’ve already started moving towards a cashless society, meaning there’s a digital record of money moving around. I recently had a conversation with a representative from HMRC who told me that the long-term goal is for every individual to have one digital profi le that will include all your government data.
“That could include your National Insurance number, NHS number, driving licence, medical information, voter registration, tax code… even your passport. It’ll all be stored as part of one handy digital profi le. It means you’d only need one form of ID. It may take 10-20 years to implement, but that’s their long-term vision.”
For more business advice, visit Torr Waterfi eld’s blog at torrwaterfi eld.wordpress.com.
