making tax digital – how it could affect your businesscreative77
You might have heard adverts on the radio…
Maybe you’ve seen stories in the news…
Or maybe you’ve heard another business owner talking about it.
Of course, it’s possible you haven’t heard anything about HMRC’s Making Tax Digital initiative.
Like many people, you might simply be too busy dealing with all the other issues you face as a business owner.
We don’t blame you.
In fact, we’ve had quite a lot of new clients coming to us recently, asking to clarify exactly what Making Tax Digital is and what it means for their business.
If you’re not sure what it is, or you’re wondering what you need to do about it…we’re here to help.
You can call us direct on 01472 287387 and we’ll be happy to discuss what action you might need to take and how we can support you.
But in the meantime, we thought it would be useful to explain how Making Tax Digital could affect your business.
Tax is moving online
The Making Tax Digital initiative is all part of HMRC’s plans to move tax and record keeping online.
As with everything these days, the general consensus is that doing your accounts online will be more effective, more efficient and make it easier to get tax returns right.
Generally, we agree.
But that doesn’t change the fact transition from traditional spreadsheet and paper-based accounting to doing everything online is going to cause some businesses real pain.
And time is running out for you to make the change, if you haven’t already.
The guidance from HMRC says:
“VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from 1 April 2019.”
It means if you’re below the VAT threshold, this won’t affect you, at least for now.
But if you’re a VAT-registered business with taxable turnover above the VAT threshold – you might need to change the way you do you accounts from April 2019.
Essentially there are two key changes…
1. YOU NEED TO KEEP DIGITAL RECORDS OF YOUR ACCOUNTS.
You might be more used to keeping paper records. And it might be you’re not familiar or comfortable with using digital devices and online software. This is why we’re working closely with our clients to help them understand the various digital platforms on offer and how to use them.
2. YOU WILL NEED TO COMPLETE AND SUBMIT YOUR VAT RETURN DIGITALLY.
Where previously you might have maintained manual records, or a print out of some description, from April 2019, you’ll be required to file your VAT return online. Again, we’re able to help your manage this and complete it on your behalf. We can guide you as to which software is best to use and how to use it.
There’s been a lot of debate – and complaint – about the requirement to complete everything online.
Having worked with a lot of businesses that rely on traditional means of accounting, we understand these changes will present an inconvenience for many people in the short term.
The good news is: here at Appleleaf Accountancy, we’re highly trained and fully experienced in keeping digital accounts and completing tax returns online.
We’re ready to support your business – big or small – if you think Making Tax Digital will affect you.
If you feel like you require help in making the transition, don’t hesitate to get in touch.
You can call us direct on 01472 287387 to arrange a free consultation, or you can complete our contact form here and we’ll be in touch.
Plus, if you’d like to find out more, we’d be happy to send you a special Making Tax Digital Fact Sheet and Action Plan that outlines more steps you can take to adapt to the changes.
If you are not already on our mailing list ,just pop your email address in the form below to receive our newsletter and we’ll send a downloadable copy of the Making Tax Digital Fact Sheet and Action Plan direct to your inbox.