"In July, 2017 HMRC announced that all businesses and individuals will eventually have to update their accounting information digitally."
MARK BROWN Partner
What does this mean?
By April, 2019 businesses above the VAT threshold (£85,000) will need to keep their records digitally for VAT purposes.
It is likely smaller businesses will be required to keep digital records shortly after. This changes the way HMRC wants information from tax payers and means that you may need to move from your existing desktop or manual record keeping and onto an online accounting package.
The good news is we are certified in the installation and operation of a number of Online Accounting software solutions which are digitally compliant and specifically designed for small and medium sized business.
What are the advantages of going digital?
Digital accounting software has significant advantages over the traditional ways of bookkeeping.
Imagine if you could:
- See a clear picture of your current financial position, in real-time;
- Have your accounts 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available;
- Avoid upfront accounting software costs – upgrades, maintenance, system administration costs and server failures are no longer an issue;
- Have your bank feed your data directly into your accounts on a DAILY basis
- Take a photo on your phone of a purchase invoice and it was posted automatically; AND
- See your results, who owes you money, who you owe to and your business bank balance 24/7, 365 from your phone.
What can I REALLY do with digital accounting software?
- Create and send invoices on the go
- Track sales, purchases, debtors and creditors
- Connect to your online banking
- View a snapshot of your business
- Estimate tax payments
- Easy VAT filing that matches HMRC requirements
- Manage customers and suppliers
How can we help?
We offer three packages that include initial set up, training and license fees depending on your specific needs:
|Recommendation and supply of cloud accounting software|
|Installation and training on software|
|Quarterly accounts preparation and submission|
|Real time management information|
|Expenses / receipts app|
|Quarterly management accounts|
|Quarterly review meeting / discussion|
|Unlimited telephone support|
Once you have converted to a cloud accounting package, we have the ability to import your data into our own software, amend as appropriate and export back to you. This improves efficiency and means we have up to date, accurate data to advise upon.
How do we make the change?
As quickly as possible! All we need is a commitment to change and we will take you through a step by step process which means you will be up and running in no time AND we will:
- Extract your existing data and upload this to your new digital accounting software;
- Link your accounts to your bank account;
- Enable Apps to your phone or tablet to let you work “on the go”; and
- Demonstrate the system and show you how to get the most from your accounts.
Making Tax Digital - a summary
On 13 July 2017, the Government announced MTD will commence in April 2019 for VAT purposes for businesses with turnover above the VAT threshold (currently £85,000) and will be delayed until at least 2020 for all other businesses.
Under the propose timetable:
- Only businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records, and initially only for VAT purposes from 2019.
- Businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now.
All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
HMRC has already begun piloting the Making Tax Digital services and will continue to do so, testing the system with a variety of businesses.
HMRC have started to pilot Making Tax Digital for Businesses (MTDfB) for VAT which allows well over a year of testing before any businesses are mandated to use the system.
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