There are now less than 100 days to go until HMRC roll out one of the most significant changes to VAT and how it is reported.
For most businesses this comes into force on 1st April 2019. If you are VAT registered with an annual turnover of over £85,000, Making Tax Digital (MTD) will in all likelihood impact you from this date.
This change means that businesses will need to record and maintain their business and accounting records digitally. This can be achieved by using HMRC compliant software or bridging solutions which will subsequently be used to submit VAT returns to HMRC. This is a major shakeup as you will no longer be allowed to submit a VAT return through the HMRC online portal.
If you are maintaining your records manually, on a spreadsheet, using a desktop software solution or just want to understand how this will impact you – act now!
The countdown has begun and VAT-registered businesses need to get ready. It’s important to understand what’s required and what records must be held digitally. It’s also important to decide what software will suit your business and will be best for you.
The good news is that we are fully certified in the set up and operation of online accounting software which is MTD compliant.
Give us a call and one of our experts will be on hand to guide you through the changes and ensure you are “MTD Ready”.
What are the advantages of going digital?
Digital accounting software has significant advantages over the traditional ways of bookkeeping.
Imagine if you could:
- See a clear picture of your current financial position, in real-time;
- Have your accounts, 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available;
- Avoid upfront accounting software costs- upgrades, maintenance, system administration costs and server failures are no longer an issue;
- Have your bank feed your data directly into your accounts on a daily basis;
- Take a photo on your phone of a purchase invoice and it will be posted automatically;
- See your financial results, who owes you money, who you owe money and your business bank balances anytime and from any device.
What can you really do with digital accounting software?
- Create and send invoices on the go
- Track sales, purchases, debtors and creditors
- Connect to your online banking
- View a snapshot of your business
- Estimate tax payments
- Easy tax filing that matches HMRC requirements
- Manage customers and suppliers
- Create estimates, purchase orders and manage your stock