Not an April Fool Joke
Do we really need to be ready – to Make Tax Digital
If you are registered for VAT then there is a finite deadline and it’s approaching fast – 1st April 2019
Everybody in the tax and accounting world is talking about it. Do we need to be? Do I care? Do you care? Am I bothered?
The simple answer is that if you are running a business you are going to have to be.
What do you need to do?
I suppose the first thing is – don’t panic. If you need assistance, and many smaller businesses will, we are here to help.
In case this has all just passed you by, what is MTD about? Very briefly.
Using manual records or Excel records and cutting and pasting data to submit through HMRC online will NOT be an option after next April.
What the Government and HMRC say is:
“Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.”
The cynical amongst us see MTD as a way of you doing the work for HMRC and speeding up tax collection. Remember this starts with VAT (only), because HMRC can’t get their software act together, and will move on to all business and personal tax. Have no doubt that HMRC are working towards capturing real time data about us all and collecting taxes as we go.
On 01 April 2019 we kick off with all VAT registered businesses that have a turnover of £85,000 a year.
We are told only 11% percent of VAT returns are filed using software. Assuming that is correct and if you haven’t already, you need to decide about your accounting software pretty soon to avoid any potential complications that could arise from upgrading or migrating your software. Remember, the use of technology is compulsory.
For the changeover to be effective, preparation needs to start now, with businesses and accountants already moving to online systems to improve efficiency, boost profitability and make the transition in April painless.
Change isn’t going to be easy, even for those who adapt to IT well. Please don’t be an ostrich because this involves adopting new technology! Get your head out of the sand and don’t leave it until the last minute.
In practice and with the right help MTD should not be daunting. Keeping digital records and filing VAT returns through software quarterly should reduce your workload and improve your data. You should be able to see spot any opportunities and threats to your business faster – which is really good news for you. Your accountants should help you with this.
“April might seem like a long way away, but seven months can speed by. If you haven’t already it’s worth researching your options. Once you’re finances are completely digital, you’ll be in a much better place when it comes to ensuring you are compliant with HMRC. Cloud-based accounting tools can help you automate and auto-correct invoices, reconcile transactions at the click of a button, manage your payroll system on the go and much more.” *
There is loads of information out on the web but if you want to go to the source, probably best to go to HMRC more information
Good luck. You know where we are if you need help, but don’t wait too long.
Please remember that each individual’s circumstances will be different and therefore you should take advice before making any decisions.
For further advice existing clients email us at support@anytime.uk.com or call 03333 110 230
For new enquiries contact us now.
*Xero software
