The tax system is in the process of transforming into a fully digital one, making it easier for businesses to get their tax right and keep on top of their affairs, but this will mean some significant changes for all of us.
What does it mean for you?
This initiative applies to businesses and any individuals who are required to submit a tax return.
The first deadline applies to businesses who are VAT registered. So if you have a business and you are VAT registered, you will need to check the dates below and make sure that you comply with MTD requirements in plenty of time.
How will it affect you?
from 1 April 2019,
All VAT registered businesses with a turnover above £85k will need to keep digital accounting records and file their VAT returns directly from a piece of functional compatible software.
Any VAT return with an accounting period that starts on or after 1st April 2019, is affected.
You will no longer be able to submit your VAT return via the online form on the Government Gateway as many businesses currently do.
MTD for individuals has been delayed, so initially, it’s only business that are VAT registered that are affected at this current time.
The Government is still compiling dates to roll out the scheme for individuals and other taxes and as soon as we get the news from HMRC on the current legislation and any new dates, we will inform you. You can check on current plans here:
How do I become compliant?
Many of our clients are already keeping digital accounting records and we have found that cloud-based accounting packages are proving to be popular with business owners.
At An Accounting Gem we are cloud accounting specialists, we will help you make the transition to digital accounting as straightforward as possible. Our dedicated team are happy to support you through the conversion process. The cost of cloud-based accounting software packages ranges from £5.00 – £50.00 per month so is an affordable and simple option.
An Accounting Gem enjoy the benefits of being Xero Silver Partners, however, we have software specialists for most accounting packages and are happy to talk you through your options.
Some of the benefits of a cloud accounting package are:
- Improved processing efficiencies – Use your smartphone or a scanner to input information
- from invoices and receipts directly into your accounting software.
- Improved bank reconciliation efficiencies – Capture receipts and payments directly from your bank account into your accounting software.
- See your results 24/7 via an App on your phone or tablet.
- Create quotes and sales invoices easily through your accounting software.
Easy access for us as your accountant to review your data and support you with any processing problems that may arise.