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What is it?
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.
Making Tax Digital for Business (MTDfB) will mean that businesses will be required to keep digital records and report quarterly to HMRC using MTD compliant software.
Will it affect my business?
On 1st April 2019, all UK businesses (including charities) that are VAT registered with taxable turnover above £85,000 will be required to keep their records digitally and submit their VAT returns quarterly on MTD-compliant software with penalties being charged for non-compliance.
There are a few exceptions to this, so if you would like to check your position - contact our MTD specialist at Winchester Bourne Ltd for guidance.
What do I need to do?
Cloud based accounting software packages such as Xero, QuickBooks Online and Sage Business Cloud Accounting and desktop solutions such as Sage will have software ready for MTDfB for VAT in time for the April deadline.
However if your VAT registered business or charity with taxable turnover above the £85,000 threshold does not use such an accounting package - you use spreadsheets or even manual records and input the VAT return figures manually on to the HMRC VAT portal – this will no longer be possible from 1st April 2019.
Here at Winchester Bourne we can help ensure you are MTD compliant. We can do so without moving your accounts across to an accounting software package.
However we would strongly recommend that you consider setting up your accounts on a software package because Vat is just the first stage in the process and setting things up properly now will be very advantageous to your business.
At Winchester Bourne we have set up numerous businesses on desktop and cloud based solutions, our expertise is here for you, we can set the accounts up for you, train you, then leave things to you - or help you, or do all the processing for you. The choice is yours.
Winchester Bourne has been keeping fully up to date with HMRC’s plans. We can support our clients in plenty of time to ensure they are MTD ready.
Whether you’re an existing client or not, unsure whether these changes will affect you, currently use spreadsheets and are concerned about what you need to do – we can help you.
If you decide this is the time to move to a cloud based accounting package we have the expertise to set things up properly, train you so that you are competent to utilise the packages fully or process all your transactions for you.
We provide a range of support tailored to your exact requirements. From initial support and guidance to set you on the right path all the way through to taking full care of your VAT MTD compliance – we can design a support package specifically for you.
The HMRC briefing on Making Tax Digital