Making Tax Digital (MTD) for VAT came into force in April this year, and the new process required the use of compatible software.
The last three months will have been spent setting up making tax digital software in order to be ready to submit your first quarterly figures.
For many business owners, this will have created major changes to their accounting procedures.
Most businesses will be used to collating their figures and then submitting their VAT return each quarter via the HMRC website. This will have used figures which have been kept using whichever format they found most convenient. Often made up of paper records and/or spreadsheets.
Under the new regulations, businesses no longer meet the legal requirements if they maintain their accounts using paper records.
The new process requires records to be kept digitally in a compatible software product or a spreadsheet.
These figures are then submitted as a quarterly VAT return to HMRC using the compatible software itself. Or, if spreadsheets are used, via ‘bridging software’. Only these products can access HMRC’s API (Application Program Interfaces) platform.
All of this means big, big changes to many businesses accounting procedures.
Rather than just recording sales and invoices, these new requirements require a process more akin to bookkeeping. Although the software is readily available from a number of different providers, some are finding it far from easy to use.
You may have found yourself spending hours getting familiar with the new software, only to be more confused than ever. Perhaps your accounts staff are taking much longer than they did previously to process the same figures.
All of this extra time could well be taking your focus away from important business matters.
However, there is an alternative to using software which you are struggling to get to grips with. You can appoint your Accountant to submit returns to HMRC on your behalf.
Here at K.A.Farr & Co we are experienced bookkeepers, and are well versed in using this type of software and can keep your accounts in order without all of the stress.
Our experienced staff can make VAT simpler and make sure your VAT returns are submitted accurately.
If you are a VAT registered business, your records must include the VAT account, VAT sales and purchase invoices and import and export documentation.
We will ensure that you are charging VAT at the correct rate on all of your sales within the UK.
With our specialist knowledge and expertise, we can also handle complex queries which arise from time to time.
Using a bookkeeping service will keep your yearly returns simple and easy to submit. All of the figures collected throughout the year will mean there is no missing information. Therefore, when the time comes for submission of your year-end accounts the process will run smoothly.
You won’t have to pay subscriptions for compatible software, only the cost of our bookkeeping service. If you are ever subjected to a VAT investigation visit by HMRC we will also manage the full process.
So, if your making tax digital software is giving you a headache, give us a call at K.A.Farr & Co. and we’ll take away the stress for you.
You can contact our friendly staff on 01704 211 434 or firstname.lastname@example.org