Businesses across the UK all have 6 April 2019 marked in their calendars: the end of the current financial year, and the beginning of the new.
In addition, 1 April is marked on financial calendars this year too - a date that impacts VAT-registered businesses above the threshold of £85k - as part of HMRC’s Making Tax Digital initiative.
We’re Making Tax Digital (MTD) ready, and so are our clients. Call us today and see how we can help you get ready for April.
2019 sees the implementation of the first stage of HMRC’s Making Tax Digital (MTD) initiative, which has been designed to ensure the UK tax system is effective, efficient and easier for taxpayers.
From 1 April, VAT-registered businesses above the threshold of £85k will have to keep digital records, and submit VAT Returns using compatible software. Businesses with a taxable turnover below the threshold can sign up to MTD voluntarily, and most will be affected by future stages of MTD. Failure to comply with the mandatory requirements may result in penalties being issued.
With around 11% of VAT returns filed using software, MTD is set to transform the entire process - manual records will no longer be accepted. Tax data will be submitted to HMRC quarterly, providing businesses with greater visibility of account fluctuations.
If you’re already using accounting software, you can check if your software package is MTD-compatible here. If you use spreadsheets for your business accounts, then you may need bridging software to enable information flow between your business and HMRC.
If you’re selecting accounting software, you will want to ensure it automatically calculates tax owed; is compatible with invoicing or banking software packages to pull data directly; performs regular reconciliation of accounts, and creates digital records.
Kendall Richardson uses Xero cloud accounting software, HMRC-approved as compatible with MTD for VAT. Our partners and staff are all Xero Certified, so there’s always someone on hand to help you.
We know it will take time for businesses to adjust to the new process. Let Kendall Richardson help you get MTD ready. Contact one of our friendly team on 01233 506203.