Making Tax Digital

HMRC will be launching Making Tax Digital to modernise the whole tax system and the way in which records are submitted to HMRC.

Every individual and business now has access to their own personalised digital tax account and these are being regularly expanded and improved. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for individuals to comply.

HMRC want to give businesses plenty of time to adapt to the changes and therefore are beginning slowly.

From April 2019 legislation will require all businesses including sole traders, partnerships and individuals above the VAT threshold of £85,000 to move to digital record keeping for VAT purposes. Spreadsheets will initially be acceptable but they will have to be used in conjunction with bridging software to upload data to HMRC. The online portal on the HMRC website will no longer be available for those over the VAT threshold.

Cloud based accountancy software applications, such as Quickbooks, Xero, Sage and Iris have been developed to deal with these changes. Our staff are fully trained, certified users of these packages.

There are many benefits to using cloud based accounting:

  • Access your accounts anywhere there is internet access
  • Authorise your accountant to access your accounts online, eliminating the need for you to provide paper or electronic copies
  • Benefit from automatic data back-ups
  • Download your transactions into the software directly from your bank, saving you time – no more manual entry
  • Choose from the wide variety of apps available to extend the capabilities of the software to fit your particular business requirements, such as POS software, inventory management and time recording apps
  • Use your phone or tablet to photograph and upload your expense receipts directly into the software

You may want to consider changing to this system at the beginning of your financial year, which may be sooner than April 2019.

We offer discounted rates for these software packages – please do contact us to find out how we can help you set up and use the software to ensure you benefit from all it has to offer.