Making Tax Digital or MTD is an initiative designed by the Government in conjunction with HMRC to make sure the UK tax system is effective, efficient and easier for taxpayers.
Beginning on 1 April 2019, VAT-registered businesses above the threshold of £85k will have to keep digital records in line with Making Tax Digital and submit VAT returns using compatible software.
The key things to remember are:
- Business records must be kept in digital form
- Quarterly updates must be submitted to HMRC
- An annual ‘End of Year’ report with final figures must be submitted.
What does it mean for my business?
Most VAT registered businesses submit their returns via the HMRC online portal, however from April 2019 this will no longer be available to them. Businesses must now use commercial software capable of keeping their records digitally and submit their records directly to HMRC via the software.
Here’s a useful link to all the information on HMRC’s website:
Smart software can cut costs and save time
HMRC themselves have not, and will not be producing any MTD software, however, there are a number of programs which are capable of doing the job. As experts in this field, we can work with many programs including Sage, Quickbooks and Xero.
In addition, as members of the Sage Accountants Club K.A.Farr & Co can offer top-notch software and training for all Sage products at fantastic rates. Sage Business Cloud is currently available at the fantastic rate of £15 (ex VAT) a month, allowing you to access the most up to date software on the market. This means that as well as complying with ‘Making Tax Digital’ you can keep track of invoices and cash flow, profit reports, and link up to your bank account.
Professional Book Keeping
If incorporating new software into your business isn’t for you, we also offer fantastic bookkeeping services. You won’t need to worry about all the ins and outs of the bookkeeping systems and methods because we have all the specialist expertise you need. Our highly qualified team can install the most appropriate bookkeeping system for you and keep your business affairs running smoothly. We are fully trained in the preparation of accounts, as well as being well versed in drawing information from all types of records, from simple, manually produced ledgers to more sophisticated and computerised accounts systems.
If your business doesn’t currently maintain digital accounting records, acting now will ensure you are well prepared for the April 2019 deadline.
Whichever system you decide is right for you K.A.Farr & Co are here to help.
Simply contact us on 01704 211434