Are you fed up hearing about Making Tax Digital (MTD)?
It seems like that’s all HMRC is talking about. It is, however, with good reason, according to research nearly 50% of VAT registered businesses are still not Making Tax Digital ready. This is despite April’s deadline which is compulsory for VAT Businesses above the £85k threshold.
HMRC is giving plenty of warning and if you don’t have a compliant VAT filing solution you are risking hefty fines. So if you want to keep the tax man happy ensure your business is ready for Making Tax Digital. Read on to find out how.
First things first, don’t fear switching all paper records to digital. It’s straightforward if you get the timing right and follow the 3 steps below:
- Speak to a tax expert
- Use recognised bookkeeping software
- Change business processes for collecting, storing and exchanging data
“The accounts are so much easier to deal with using Kashflow and the Vat returns are so much quicker too as our accountants can get access to our Kashflow when they need to, which also makes helping me with any questions or mistakes I make easier too. IrisOpenSpace makes the moving of information so much quicker, easier and more secure as does the IrisOpenPayslip system also. These have all been very beneficial to our company for many reasons and having Murrison & Wilson so knowledgeable makes everything run smoother. “ Sharon, Mad Crew Limited. Client
1 Speak to Tax Expert
A tax expert will sit down with you and discuss your existing business model and get to grips with the current processes and systems you have in place. Then spend more time improving your business practices guaranteeing they work for you and work for HMRC. Consequently, keeping the tax man happy.
2 Bookkeeping software
HMRC is making it very, very clear you can only store and exchange digital records on recognised software i.e. HMRC approved. You can find out about which systems are approved by HMRC in our blog: Is your VAT registered business digital ready
Adding Bookkeeping software to your business armour does have mutual benefits for you the client and for your accountant.
A digital accountant now has access to your financial records 24/7. This provides a snapshot of the health of your business anytime, can assist with managing cash flow and forecast the future direction of your business. Consequently the business data stored is used to build a strong business strategy that safeguards the future of your business.
Even better for you, all your business information is stored securely in one place and your accountant can offer a clear, transparent and tiered pricing structure. That means, as a client, you only pay according to the size of your business. So no hidden costs and don’t pay for services you don’t need. As your business grows there’s built in flexibility to add services on as and when you need them.
Finally, with regards to HMRC you are always fully up to speed with your business finances and can readily supply accurate quarterly reports, on time. Resulting in a happy tax man and no costly fines.
3 Change business processes
Changing businesses processes for collecting, storing and exchanging data is a daunting project for any business to embark on. However, there’s no escaping the fact you must align yourself with HMRC’s VAT filing processes before April 2019.
The added is advantage is you and your accountant will have access to all your own business data anytime. That means you can spot problems early, adapt quickly and continue to move your business forward. Even better you will keep the tax man happy.
“Having my business accounts online has been a brilliant add on, using IrisOpenspace, Kashflow and the payslip options as well. I love the fact that if I have any problems assigning anything, either one of you can guide me through the process. I know that ultimately having my accounts online makes your life easier, but the biggest bonus is how much easier my life is as well, and I can submit my accounts super quick to you. “ Liz Bandeen, Best Ever Massage, Client
If you would like to discuss how we can ensure you meet the Making Tax Digital deadline get in touch now on 0141 290 0262