Have you heard about Making Tax Digital (MTD)?
Are you currently using MTD compliant software?
Do you need any help with knowing what your requirements are?
You may have seen lots of adverts for accounting software on the TV or heard adverts on the radio recently. This is because further changes are coming regarding the tax system here in the UK. These changes may well impact you and your business!
Making Tax Digital (MTD) is a phased approach to overhauling and digitising the tax system in the UK. When the first stage of this was implemented back in April 2019, it was the biggest tax change in the UK in a generation.
Here are the key dates on these changes so far:
The Roll-Out Of Making Tax Digital (MTD) For VAT Began!
This required all VAT registered businesses with an annual taxable turnover above the current VAT threshold (£85,000) to be compliant.
This meant keeping digital records (via approved software or via bridging software).
This also brought a requirement to submit VAT returns via approved software.
VAT registered businesses below the threshold could voluntarily register too.
The Next Major Phase Of MTD For VAT Begins!
This requires all VAT registered businesses to become compliant with the same rules as above.
This applies to VAT periods starting on or after 01 April 2022.
Another Major Phase Of MTD Begins.
This relates to self-employed businesses and landlords with a total gross income greater than £10,000.
These businesses will then need to be using approved software.
Quarterly returns will need to be submitted to HMRC, including details of income and expenditure (more details on this to follow).
How We Can Help
Talk through your needs and requirements.
Provide set up on Xero cloud accounting software (packages start from £5 + VAT per month).
Provide training and support on Xero, ready for Making Tax Digital for Income Tax (ITSA) from 1st April 2024.
Help with ongoing support in using Xero, assistance with VAT returns and management accounts.
If you would like to hear more about how we can help, contact us on: 01788 815017
or email: lucy@cubeaccounting.co.uk and we will be more than happy to discuss this with you.
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