Making Tax Digital -Are You Ready?
Making Tax Digital (MTD) is a new reporting requirement being introduced by HM Revenue and Customs (HMRC) with effect from April 2019. All VAT registered businesses will need to prepare their accounting records on MTD compliant software and submit quarterly returns to HMRC. Penalties will be levied by HMRC for late submissions.
One particularly effective piece of software is Xero. This has the benefit to businesses of having an automatic bank feed, meaning that the business' bank transactions can be imported directly into the software from its bank. This saves considerable administration time and enables business owners to have up to date business information at their fingertips. VAT returns can also be submitted directly to HMRC via the software.
From April 2020, all non-VAT registered businesses will need to move onto the MTD system and also private landlords. If you rent out a property, then this will affect you. Working with an agent will provide you with a tax-effective software option and ensure you get your returns filed on time every quarter.
Sarah Goddard is Xero Adviser Certified and is able to assist clients with making a smooth transition over to the new system, which will need to be successfully up and running well in advance of April to ensure that any teething problems are dealt with and all record keeping is up to date.