How will Making Tax Digital (MTD) affect my Business?
You will have heard Making Tax Digital (or MTD) bandied around a lot recently in business circles, but what is it, and how will it affect you and your business? Read on for more!
What is it?
MTD is going to be the biggest change to the way taxes in the UK have been managed in a long time. HMRC need to move to a fully digital system, meaning that going forward, VAT returns will all need to be done electronically.
What are the benefits?
By changing the way records are kept and submitted to HMRC, MTD will mean that tax returns and accounting will be made:
- Easier - By using suitable software, MTD will make it much easier for small businesses to manage their accounts and file their tax returns online.
- More accurate – There will be less opportunities for mistakes and miscalculations to be made, and harder to disguise fraudulent activities. It will help to ensure records are kept up to date and with less manual entry of data it will reduce errors.
- More efficient – The process will be streamlined, with more automation, meaning the process for filing will be faster and easier, saving time for businesses, bookkeepers and accountants, as well as HMRC. It will make it much easier for businesses to manage their day to day business affairs.
When does it start?
MTD is being rolled out in stages. If your business is VAT registered, and turning over more than the VAT threshold, you must be ready in April 2019.
After the initial launch, businesses registered for VAT who are under the threshold will be required to start submitting their returns electronically as well. This is likely to be in April 2020.
I’m not ready - what can I do about it?
Speak to us. We can advise you on how and when you should go digital. We will work out the best software for you, and walk you through the process. Now is the time to start planning for the switch - it makes sense for so many reasons! We can set you up on a digital system to help you streamline your business finances. You can even authorise them 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.
Mark and 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 surrounding areas. With a recently released app for Apple and Android devices that includes Receiptbank, mileage tracker, invoicing system and much more, Choice Bookkeeping will help your business ensure you are ready for the upcoming tax changes.