Making Tax Digital
The UK Government – HMRC – is changing the way we report our finances.
Be prepared. Be positive.
We have been preparing for a while now to help ensure that you can make the transition to digital taxation. For some of us already using computer software to prepare our accounts and submit online there will be little difference; for others there may be a little more preparation to do.
Technophobes listen up! We know that changing the way you work is a hard pill to swallow but think for a minute about of some of the changes in your life that made things easier? Well, this is one of those changes! We are here to help you as much as we possibly can, so there’s no need to be nervous. Our up-coming workshops will enlighten you and open up a positive new world of accounting. Or at the very least, come and join us for a cuppa and a chat.
Accurate, fast and at your fingertips – online accounting
Whatever your situation we’ve got the answer and it won’t hurt as much as you think.
Here’s the latest news:
Making Tax Digital (MTD) for VAT requires VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT Returns using MTD compliant software.
It is increasingly common for business records and accounts to be kept digitally, in a software program on a computer or tablet, or in a smartphone application, or maintained through such a device and stored using a cloud-based application. The difference under Making Tax Digital is that the software which businesses use must be capable of keeping and maintaining the records specified in the regulations, preparing their VAT returns using the information maintained in those digital records and communicating with HMRC digitally via the Application Programming Interface (API) platform.
If your digital records are up to date, software will be able to collate and prepare your return for you. It will then show the return to you and ask you to declare that it is correct and confirm that you want to submit it to HMRC. Once you have submitted your return you will receive confirmation through your software that it has been received.
HMRC has advised that more than 40 suppliers have said they will have software ready during the first phase of the pilot and other software suppliers are expected to follow. HMRC will open up the pilot to allow more businesses and agents to join later in 2018. Internet link: GOV.UK software suppliers
What does this mean for you?
- If you currently use software to prepare your VAT – the likes of QuickBooks, Xero & Sage Cloud packages are all MTD ready, so you do not have anything to do (only start submitting via the software from next April if you don’t already) – check that your software is ready by using the above link.
- If you currently use SAGE50 to prepare your VAT –please check that you have a MTD ready version. On the menu bar click help, about and under program details check the version number. If your version number shows v184.108.40.206, your software is MTD compliant. If your version number is lower than v24.2 then you need to upgrade to version 24.2.
- If you prepare your return in excel – then you need to choose one of the MTD ready software packages available, please give us a call to chat through the options available for you. You must be up and running with the software by April 2019, but we would suggest doing it as close to the start of a new financial year as possible.
- If you send us paperwork and we submit your return – then we will be in touch as you will still need to move onto a MTD ready software package, if you have not yet heard from us please give us a call and we can discuss the options.
If you have any queries regarding the above then, again, please do give us a call. We can help you through it all.
You can find the full text about the proposals, timescales on the UK Government Making Tax Digital web pages.
“Sooner rather than later” is ALWAYS a good advice.
We strongly advise that you don’t leave it until the last minute. Making plans and getting going early is a good way to dispel any concerns and make a seamless transition.
If you are asking yourself:
“Why not me?
“Why not now?”
The answer is “no reason whatsoever”, so, talk to me and let’s change your business for the better.
Read the success stories.