Everyone is talking about Making Tax Digital. Some are trying to get their heads around it whilst others are still intimidated by the sound of Making Tax Digital. To save you from that, I am giving you all the basic information you need to make sure you are aware, compliant and not intimidated.
Only VAT registered businesses and those with an income greater than £85K will need to make changes by 2019. If you are a VAT registered company then you’ll need to start using digital software to ensure your receipts and invoices are recorded by April 1st 2019. Finding the perfect digital solution can be difficult initially but it doesn’t need to be, that’s where we come to help you.
Last year the government lost roughly £8 billion from errors made by businesses when inputting their tax, so plans are being put in place to try and combat the amount of errors being made. They have a knock on effect not only on HMRC but the businesses too as the errors then need to be rectified. Businesses may find they have lump sums to pay at times they have not forecasted for due to the errors in accounting. Digitalising the invoices and receipts should marginally decrease the amount of errors.
To help you pick the right software here are some of the main features your software must be able to do in order to ensure you are completely compliant:
- Must be able to keep records in a digital form
- Should receive information from HMRC via the API platform
- Should create a VAT return from the digital records
- Must be able to preserve digital records in a digital form
- Should provide HMRC with VAT data on a voluntary basis
Consider all these features before deciding which solution is right for your business. The use of spreadsheets will still be permitted although you will need to ensure that they will be combined with third-party software to guarantee a flow of data from your business to HMRC and vice versa.
We offer a range of accounting solutions with installation aid should you require it. We can also provide training to help you learn all about the software so you are can fully utilise it. In addition to this, we offer support to help you along the way should you get stuck. Contact us for MTD promotional bundles so you can be fully prepared, compliant and covered.
If you have any questions we are offering business systems health check to help identify what you currently use and what is the best recommended software solution for your business.