Making Tax Digital Are you going to be ready?
The big thing to think about after 31st January (the self assessment tax return deadline) is Making Tax Digital (MTD), which is being rolled out for businesses in the UK from April 2019. What does this mean for your business?
HMRC are making the change to a fully digital system, which means that VAT returns and accounts will all need to be done electronically. If you are currently using a cloud-based software program such as Quickbooks and Xero, the good news is that there isn’t too much for you to worry about. Or you are using a paper-based bookkeeping system, or use an Excel spreadsheet or similar for your accounts, then this will mean some changes for you.
If you are VAT registered, and your turnover is above the VAT threshold, then you will need to be ready for the change by April 2019. But if it is under this, you will have a little longer until you need to change over to the new system, but it makes sense to start the process sooner rather than later.
So, what is it all about?
Essentially, your records will all need to become electronic. Cloud software is the easiest option. If you are currently using Excel, you can keep using it, but you will need some bridging software when filing, but there is no manual intervention allowed after the transaction has been entered. It is far better to use a software-based system. Once set up, it will be much easier for you (or your bookkeeper) to manage your accounts, as well as it being more accurate and efficient. You can read more about the benefits here [Link to previous MTD blog].
I’m not ready - what can I do about it?
If you aren’t on a digital system, speak to Us now. We can advise you on how and when you should go digital. They’ll also work out the best software for you, and walk you through the process. We will set you up on a digital system to help you streamline your business finances, and you can even authorise us to manage your VAT return for you. By using a cloud-based system such as QuickBooks, all the details will be ready to submit when MTD comes into effect. On your first return after the 6th April, there will be no manual intervention or adjustments allowed. This means that you can’t manually enter the boxes 1-9 via the Government Gateway.
I’m not sure where to turn – who can I talk to?
The team at Choice Bookkeeping are on hand to help with all your bookkeeping needs. As an affordable alternative to an expensive accountant, speak to Choice Bookkeeping for a free consultation to see how they can assist you and your business be ready for Making Tax Digital. With offices in Usk and Pembrokeshire, they cover all of South and West Wales and the surrounding areas. With a recently released app for Apple and Android devices that includes a receipt collator, mileage tracker, invoicing system and much more, Choice Bookkeeping will help your business ensure you are ready for the upcoming tax changes.