Haines & Company

Chancellor pushes for e-invoicing: What you need to know

Talk to an expert

The Chancellor unveiled a series of announcements last week that could have implications for UK businesses. One of the most relevant for business owners was the government's push for electronic invoicing (e-invoicing).


HM Revenue and Customs (HMRC) will soon launch a consultation on encouraging the wider use of e-invoicing, with the goal of simplifying business transactions and reducing administrative burdens but perhaps especially, reducing errors in tax returns so that HMRC can ‘close the tax gap’.


While there are clearly advantages for HMRC in businesses using e-invoices, it’s also fair to say that they can benefit businesses too.


Benefits of e-invoicing for businesses:

  • Improved cash flow: E-invoicing accelerates payment times by automating the invoice approval process, making it easier for businesses to receive payments quickly.
  • Reduced errors: Automated processes can help minimise the risks of manual entry errors in invoices, which can lead to payment delays or disputes.
  • Increased productivity: With fewer administrative tasks, businesses can save time and focus on other essential areas, such as growth and customer service.
     
  • Tax compliance: E-invoicing can help businesses keep accurate tax records, making it easier to complete tax returns and avoid discrepancies that may lead to penalties.

How could you take advantage of e-invoicing?


While the consultation is yet to launch, there’s no reason you couldn’t give some thought to moving over to an e-invoicing system now.


To do this, you could explore the options available. Many software providers offer affordable solutions tailored to SMEs that work with your existing accounting software. You may find that the software you already use can do e-invoicing for you.


If you need any help with e-invoicing or setting up your accounting software, please just give us a call and we would be happy to help you out.


See: https://www.gov.uk/government/news/chancellor-unveils-package-to-deliver-on-promises-of-new-government

October 10, 2024
Companies House introduces new financial penalties regime

Companies House have rolled out a new penalties regime as part of a broader effort to boost corporate transparency and combat economic crime, following the implementation of the Economic Crime and Corporate Transparency Act 2023.

Read article
October 9, 2024
Make sure you claim your child benefit!

If you’re a new parent, congratulations! Apparently, around 2,000 babies are born on 26 September each year – more than any other day.

Read article