Making Tax Digital
ARE YOU READY?
Last Summer HMRC announced that from 2019, businesses above the VAT threshold (currently £85,000), will have to start keeping digital records for VAT purposes and file quarterly returns electronically using third party commercial software.
Roll-out to businesses below this threshold will follow.
Income Tax is not mandated until 2020.
However, if you start your preparation now, by the time you have to ‘go digital’ a lot of the leg-work will have been done.
Our team share some ways you can start to prepare:
Review your systems and processes
Remember that reporting will happen 4 times per year, so these dates need to be factored in to your work-flow, and relevant data will need to be collected from your clients accordingly.
Evaluate your current accountancy software if you have it.
Technology moves on at a rate of knots, and now is the time to review whether your accounting software is fit for purpose and whether it will integrate with HMRC technology. It may also be a good opportunity to consider cloud-based software, that will mean most of the ’accountancy legwork’ is done as you go along.
Whilst currently you have the choice to file your Self Assessment on paper or online, this will be done online in the future. The deadline for paper submissions is 31st October, whilst those submitting online submissions benefit from a later deadline of 31st January.
Culverhouse & Co currently file all Self Assessments on behalf of clients online. The ’Digital Personal Tax Account’ has numerous benefits including increased accuracy and efficiency.
If you would like assistance...
We’ve started to help many clients prepare for ’Making Tax Digital’. This includes reviewing clients’ systems, processes and software (if they have it). We can also help with selecting new software.
If this is something you would find useful, please don’t hesitate to contact us.