Are you a VAT registered business that currently manages your accounts on a spreadsheet?
There are some important changes taking effect next year which will affect the way you store your records and submit your tax returns. It’s called ‘Making Tax Digital’ – a government plan to help individuals and businesses keep on top of their accounts more easily.
It’s been introduced because evidence shows that many people unintentionally get their tax wrong, which is costly to the economy. So, the goal of Making Tax Digital is to make the process more efficient and effective for everyone by moving everything online.
What to expect
VAT registered businesses will lead the way and from 1 st April 2019 will need to store and submit accounting records digitally.
This applies to you if your taxable turnover exceeds the VAT registration threshold (currently £85,000), even if it later drops below that.
Don’t panic! It doesn’t necessarily mean you’ll have to ditch the spreadsheet, but you will need to use them combined with digital software to make sure you’re meeting the requirements.
Helping you to prepare
If you’re thinking ‘uh oh – this sounds like lots of extra work for my business and I don’t know where to start,’ we’ve got good news! We can help you to prepare, talk you through the changes and explain how it’ll affect your spreadsheet and break down the steps you need to take.
We can provide you with the knowledge and confidence to make tax digital for your business…and if you get in touch soon there will be plenty of time to put it into action.
Xero and Sage are Making Tax Digital compliant and approved software. We are proud to be a ‘Making Tax Digital Ready’ champion for Xero.
Anne and Lucy
Further reading You might find the following information helpful in the meantime: Overview of Making Tax Digital - HMRC
Making Tax Digital for VAT - HMRC