Making Tax Digital (MTD) continues to be a hot topic, especially after the Government’s recent announcement of a delay to the proposed start date. However, just because the timetable has been pushed back, now is not the time for businesses to be complacent – in fact, there couldn’t be a better time to consider moving to a digital accounting system.
Last month, the Government announced that it had deferred the introduction of MTD – the HMRC initiative that aims to completely digitise the tax system for all businesses and individuals with a secondary income in excess of £10,000. The original proposal called for MTD to be rolled out by 2020, marking the end for the established annual tax return, in favour of a new, quarterly reporting regime. Under the revised plan, only businesses with a turnover above the VAT threshold (currently £85,000) will need to keep records digitally from 2019 and then only for VAT purposes. Other businesses will not be required to keep digital records until at least 2020.
Some may be tempted to postpone their plans to digitise until MTD becomes mandatory, but this could be an opportunity lost. When it comes to migrating over to a cloud system, it can take a while to get used to the software, train up on how to use it and spend time with your accountant making sure your system delivers what it needs to. MTD is on its way, whether we like it or not and HMRC’s expectation is that all businesses will be required to utilise appropriate software by the time MTD becomes mandatory. Whilst this is at least two years away, there could well be a spike in demand for MTD-compliant software as we get closer to the deadline, so can your business afford to be caught up in the rush, as well as having to deal with the transitional issues?
On a positive note, the right cloud accounting system should prove an invaluable tool for business owners – 24/7, real time access to your financial data, snap shots of your business performance from any internet-connected device, seamless collaboration with your accountant and no need for separate backups.
Digital is not the future, it is very much now and it will give your business a cutting edge. If you are interested in hearing more about cloud accounting, Wilkins Kennedy is ideally placed to help. Contact us today to find out more information.
Is Making Tax Digital (MTD) relevant to your academy?
On 1 April 2013, the government introduced the Annual Tax on Enveloped Dwellings.
Wilkins Kennedy highlight some issues and possible solutions for businesses trading in and/or moving goods.
VAT registered businesses have been receiving letters from HMRC recommending that an ‘EORI’ number (Economic Operator Registration and Identification number) should be applied for by 29 March 2019, in preparation for Brexit..
In his speech yesterday, Chancellor Philip Hammond demonstrated his commitment to the principle of the Spring Statement as a low-key event, at least in terms of tax and public spending announcements.
With the 5 April rushing towards us and heralding the start of a new income tax year, some changes to bear in mind going forward.
There’s no better time to be nice to staff and customers than at Christmas. But the tax man is less generous than Santa and there are certain clauses you need to be aware of before you start popping £50 notes into envelopes to hand out over mulled wine round the office tree.