By April ’19 most VAT-registered businesses with taxable turnover above the VAT threshold (currently £85,000) will be required to keep digital records for VAT purposes and send VAT returns to HMRC using Making Tax Digital (MTD)-compatible software. This means software that can integrate with HMRC systems via an Application Programming Interface (API).
Spreadsheets and incompatible software packages are initially permitted for keeping records but must be used in association with ‘bridging’ software capable of converting and submitting the required information to HMRC in the correct digital format.
We recommend that you take the following steps now to ensure you are ready for Making Tax Digital (MTD).
- establish if the April ’19 deadline applies to your business
- assess whether your current accounting system / software is compatible for MTD
One of the easiest ways of making sure you comply with HMRC’s MTD regime is to keep your business accounting records digitally on cloud-based accounting software. There are several advantages to this, including:
- as your records are held online, being able to access them anywhere, at any time and on any device
- being able to see a clear picture of your financial position and access a wealth of financial reports
- having the ability to create and send digital invoices on the go, meaning your customers receive them in an instant – helping you get paid faster.
- being able to get daily bank feeds sent directly to your software, giving you real-time information
- the ability to post expenses from photos of receipts on your phone
- having the reassurance of MTD compatible software
How we can help
We can assist in the following ways:
||by providing you with a digital software package.
||by providing training and ongoing support for XERO and Kashflow software packages.
||by providing bespoke bookkeeping and MTD compliant VAT services.
||by offering an MTD compliant VAT ‘bridge’ filing service for anyone still using spreadsheets or non-MTD compatible software.
Require more information?
If you would like more information or would like to speak to us direct then call us on 01242 223160. Or if you would prefer, ask us a question online.