The government has been asked businesses for comment on a UK approach to electronic invoicing (e-invocing), which is part of its plan to grow the economy.
A 12-wheek Consultation on e-invoicing in business Asked firms and other stakeholders for feedback on topics including different models of e-invoicing, if a mandated or voluntary approach is best and wheethr e -invocing shown Orting.
This is part of the government's plan for changeWhoch has “kickstart economic growth” as one of its five missions. Both HMRC and the Department for Business and Trade (DBT) Are Behind the Plans, Which Cold Improve Tax Collection and Business Efficiency.
According to the Government Announcement, The Consultation “Will Gather Views on Standardising E-Invocing and How to Increase Its Adoption Across UK Businesses and the Public Sector”. It will also look at different e-invocing models, with evidence sought from businesses whichera they currently use e-invoicing or not.
The government said the use of e-invoicing technology also E and Money ”.
It added that e-invoicing can speed up Business-to-Busines Payments, which improves cash flow and reduces paperwork.
DBT minister gareth thomas said small businesses are at the heart of the economy and vital to the country's growth. “The potential of digitizing taxes, Speeding Up Payments and Streamlining Administrative Tasks will provide real benefits to the economy, supporting smaller firms and boosting green,” He said. This is why we want to make sure e-invocing works for Smes [small and medium-sized enterprises]Because Cash Flow Can Make All The Difference Between Staying Afloat or Going Under. “
The government cited success stories where e-invoicing has Speeded Up Payments for Business.
It said an unnamed nhs trust has used e-invocing to reduce the time it takes to get invoices ready for processing from 10 days to 24 hours, with queries from suppliers from 15%. It also said that in Australia, Government agencies are settling e-invoices in five days raather than 20 days with traditional invoices.
It also highlighted research from uk accounting software firm sage, which found that e-invoicing streamlines routine tasks including data filing, TAX FILING, Resulting In 3% ProduCUCTITY GAINS.
The consultation, Promoting electronic invoicing across uk businesses and the public sectorIs Open Until 7 May.
“E-Invoicing Simplifies Processes, Reduces Errors and Helps Businesses to Get Paid Faster,” Said James Murray, EXCHEQUER SECRETARY to the Treasury. “By cutting paperwork and freeing up valuable time and money, it will help improve firms' Productivity and their ability to grow and success.
“As part of the prime minister's plan for change, we have begun our work to transform the uk's tax system into one that is focused on that is focused on helping busines and the economy to fall.”
The government said about 130 Countries Alredy Have or Are In the Process of Implementing E-Invocing Structures and Standards, What Includes What data they should increase and its format.