Tax is changing for businesses, accountants and bookkeepers. Digital finance record keeping is becoming mandatory, learn why and how you can get compliant.
Making Tax Digital (MTD) is part of the government's plan to make it easier for businesses to stay on top of their day-to-day accounts, improving efficiency, accuracy and ease of compliance.
MTD is the beginning of the end for paper-based accounting for millions of business owners and the self-employed.
From April 2019, businesses above the VAT threshold are required to set up a digital tax account and file quarterly returns online. The government believes a digital tax system is the right decision, however the implementation and timeline is still being considered.
We are advising our clients start to prepare now, as more and more businesses migrate to the cloud to improve their efficiency, boost profitability and remain compliant. As it stands:
Any business can begin to migrate to the cloud now to benefit from cloud accounting technology so we would encourage you to consider your options and have a plan in place.
Keep reading to find out more, or download our factsheet.
Probably, yes, but it will depend on the size of your business when the new regulations apply.
Download our decision-making flowchart to guide you on your MTD journey.Help Me Decide
First, decide if you have, or want, to go digital. The sooner you decide to make the transition, the sooner you will appreciate the benefits.
We typically advise either Xero or Sage for our MTD accounting products, so would recommend you take a look at those and see which one fits your requirements.
Then, speak to Aspen Waite and we'll get you set up and running - depending on how your records have been kept, this could be a quick job or a big job - but we'll do our best to get you online with minimal disruption to your business.
Contact one of our advisors today to find out more.
Cloud-based accounting software saves you time and money, improves security and accuracy - and ensures you remain compliant.Read more benefits
HMRC haven't released their list of approved software yet, but the major providers are well underway implementing a compliant solution.
If you already use Sage, Xero, Quickbooks or similiar, then you're ahead of the game!
The government recognises most businesses want to get their tax right, but latest figures suggest some £8 billion a year in tax is lost from avoidable errors.
HMRC wants to do more to help businesses get their tax right, and MTD is a step in the right direction.
We suggest you seek professional advice before making any decisions regarding Making Tax Digital or your obligations as a business.
Call us on: 01278 445151