What is making tax digital?
Making tax digital (MTD) is a huge project by HMRC and it applies to businesses, sole traders and landlords. The aim of this project is to maintain accounting records using computer based software. This data will inform HMRC about the income and expenses every quarter.
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When this will affect your business?
There has been a revised plan in the finance bill. Under the old plans, landlords and businesses that have sales over £10,000 would have needed to submit quarterly returns. The businesses that are vat registered also would be required to submit from April 2018 and businesses that are not vat registered would have to submit by April 2019.
The treasury has amended the plan and the requirements since then, as the previous timetable was not practical and they considered the opinions of professionals in the accounting field.
Under the new plans the following will apply:
- Only Vat registered businesses will need to keep digital records.
- This will apply from April 2019
- Non vat registered businesses will not need digital records until 2020
- HMRC have opened the pilot scheme which will enable businesses to test and use the system.
Which software will you choose?
If you are still using spreadsheets, then now is the time to stop and choose a software package. There are a number of cloud based software packages. Majority of these bookkeeping packages will use bank feeds. This basically means the bank transactions will automatically feed in to the software which ensures the accuracy of the data and also saves time.
How to store your records?
You may choose cloud based storage or you can choose from the latest camera and scanner application that directly feed into your bookkeeping software. It is important that you have a system in place that is secure and is backed up. There are benefits of using digital technology but also drawbacks such as losing the data if this has not been backed up.
Why Choose GM Professional Accountants as your MTD Accountant?
GM Professional accountants are experienced in making tax digital and we have our own dedicated software that will meet the requirements of your business. We have applications that can be used from your phone or desktop to keep Digital records which saves time and is efficient. We understand that moving to a cloud based software may seem difficult. This can overcome by the right guidance and management. GM professional accountants can assist you in preparing for MTD and can help you at every stage. From knowing when your reporting period is starting, what software packages to invest in and how to keep your records secure. These are important stages as you can over spend on features that you may not need. These can be packaged under different price plans, you will need to know whether you are choosing the correct one for your business.
Call GM professional Accountants today and we can assist you in making tax digital a simple process.
Call us on 0208 396 6128 to speak to a tax expert.
