Published: 13 October 2017 | Category:
We’ve devoted a lot of time here on our blog to advising our readers on what’s to come in terms of Making Tax Digital, the Governments project to upgrade universally from paper-based accounting. Although there’s been a lot of confusion and hesitation from the Government lately, certain items have still been confirmed and will be happening, so all businesses should be ready.
As you know, if you have a turnover above £85,000 you must register for VAT. What will change in the not-too-distant future is how you’ll be required to submit your VAT returns. HMRC has stated clearly that these businesses above the VAT threshold must maintain digital records for VAT purposes and submit VAT returns using software that is compatible with Making Tax Digital.
Strictly speaking, it’s not necessary to keep all your accounting records digitally, as only VAT will be coming under the new Making Tax Digital rules in the near future. However, keeping two separate forms of accounting running at the same time is liable to lead to mistakes and mix-ups, so it’s worth considering changing wholesale to digital accounting methods sooner rather than later. It’s also quite likely that the Government will be expanding the Making Tax Digital project in the future, which will mean having to make further changes to digital accounting anyway.
As Chartered Accountants we’ve been helping our clients to remain compliant with the law whilst minimising accounting outlay for many years. We work hard to ensure our services are the best in the business, which is why we already offer access to Xero accounting software that can only be purchased through Xero Partners such as ourselves. We can ease the process of getting onto digital accounting, saving you a headache and saving your business money in the process.
To find out more about how we can help your business to save money and become more efficient, get in touch with us today! You can call us on 01772 716 555 or fill in our online contact form and we’ll get back to you.