Making Tax Digital. What’s all the noise about?
Have you heard the noise about making tax digital? Well if you have a business you will here about it soon enough, and if your accountant hasn’t made you aware of it it’s really time to sit up and take notice. You need to ask them or feel free to contact us for a discussion about making tax digital and other time saving practices for your business.
So what is MTD? It stands for Making Tax Digital and it’s a new initiative from H M Revenue and Customs to reform the UK tax system to be one of the most advanced in the world. That’s all very well, but what does it mean for you?
MTD is being phased in and if you have a business which is VAT registered with a turnover above the VAT threshold, then you will be affected from the 1st April 2019. You will need to keep digital accounting records and file your VAT returns using accredited commercially software – you will no longer be able to use the HMRC gateway to submit your VAT returns. Corporation tax and income are set to follow from 2020 so even if you are not yet VAT registered you will need to do something sooner or later.
So what do you need to do? If you are already using online accounting software such as Xero, or Quickbooks, then congratulations, you are ahead of the game and you will need to do very little. Your software provider will be working to ensure the software you are already using will be MTD compliant by 1st April 2019.
If you are using manual records or disc based software such as Sage, you need to take action, NOW!
Burden or Opportunity?
Some business owners we have talked to see MTD as more red tape imposed on them by the government. At evirtualfd we see this differently, we see it as a BIG opportunity for you to move your business into the 21st century, upgrade and automate and streamline your systems so you can understand and get fluent with the numbers that drive your business, freeing up more time for you to concentrate on growing your business, your profits and the quality of life for you and your family.
Sounds daunting? It really isn’t, conversion to online software is simple, hassle free and seamless, mostly done by us in the background, so you will be online MTD ready before you know it, with massive benefits for your business to boot.
To find out how we can help you, fill out this online contact form and one of our team will be in touch with you.