Making Tax Digital Is Coming!
It's nothing to be scared of ...
POSTED BY JONATHAN VOWLES ON 25/12/2018 @ 8:00AM
You may have received notification from HMRC about Making Tax Digital, or read about it and wondered what the implications and possible benefits could be for your business ...
Making Tax Digital is nothing to be scared of, especially if you work with JVCA and Xero!
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MTD is legislation that is being rolled out by HMRC in several phases, starting from April 2019. From this date, all VAT registered businesses are required to file their VAT Returns online using recognised software.
The requirements will subsequently be extended to other areas including income tax and corporation tax so eventually, every business owner will be affected.
How can we help?
The recognised digital software that we recommend is Xero. As a Xero specialist, we will help you to choose the right package to enable you to make the move and ensure compliance with HMRC. We will assist with the submissions and choose add-on applications (known as apps) that can help to streamline your paperwork.
Where would I have to do this?
The beauty of a digital system is that you can do this anywhere, at any time. If you wanted, you could update your data from your living room sofa or from the top of a mountain. Have you ever lost a receipt and kicked yourself for not having it? By turning your phone camera into a scanner, you can upload your receipts directly into the app.
Why would you want to do this?
Aside from the necessary compliance with HMRC, you will have better access to your own records throughout the year and can see at the touch of a, button who owes you money and to whom you owe money.
This includes VAT as you'll be able to see a running balance in real time, enabling you to have a better understanding of your business position. Not only is it more convenient, but it can also help to make your business record keeping simpler and far easier, saving you a lot of time and hassle.
"Would you like to know more?"
If you'd like to find out more about transitioning onto Xero and how it can help with Making Tax Digital then do give me a call on
01234 752 566 or click here to ping me an email and let's see how I can help you. We can work alongside you to make the process as smooth as possible.
Until next time ...
More about Jonathan Vowles ...
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas, which can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.
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