Making Tax Digital
In his March 2015 budget, the Chancellor announced that this was “the end of the tax return as we know it”. The key change is that businesses will be required to digitally file tax returns on a quarterly basis.
So what does this mean for you?
The new digital tax accounts (DTAs) will require most self-employed people, limited companies and landlords to keep digital records and update HMRC at least quarterly. This will give individuals and businesses a real-time view of their tax affairs and will enable you to prepare for your tax liabilities.
What are digital records?
Keeping records in a digital form means that each business and landlord will no longer be able to simply keep their records in a book or on a spreadsheet but will have to use a form of accounting software which will have the capability to communicate with HMRC’s systems. There are many accounting packages on the market but not all of them will have the capacity to communicate with HMRC. Call us to discuss which solution is right for you.
When will this happen?
HMRC have announced that from 2019 businesses that are over the VAT threshold will be required to keep digital records for VAT purposes. Other businesses will be required to keep digital records and update HMRC quarterly from 2020.
Don’t panic, we are here to help!
Moving to a digital software package will mean a lot of extra work for many. But, don’t worry we are fully trained and certified in Quickbooks and Xero and will be with you every step of the way. We can set you up, train you and your staff or even take over your bookkeeping for you. We provide the software at a discounted rate to ensure you and your business are getting value for money.
Contact us if you would like more information
01271 815 332