We know from our research that more businesses are using accounting software to help run their business. Our previous engagements have confirmed that integration between Inland Revenue and software is something businesses want. The creation of AIM, a provisional tax method that works within accounting software, will bring the two together. It will also result in an improved software product to use. Currently, accounting software collates the profit and balance sheet information throughout the year and any tax adjustments are typically calculated at year end by a tax advisor who generally works offsite and retains their part of the the tax adjustments information outside of the clients accounting software.
By including income tax capability and information within the businesses software, businesses will be able to enter their tax adjustments themselves throughout the year and tax advisors will be able to review them if and when necessary. This will provide businesses with better visibility of their tax liability during the year. All business information is contained in one package and all the records are together.