09 November 2020
New updates to Making Tax Digital – what do you need to know?
In April 2019, HMRC brought in Making Tax Digital which meant that VAT registered businesses above the VAT threshold of £85000 had to change the way they prepare and submit their VAT returns and had to take on cloud accounting software to file digitally with HMRC. Now Making Tax Digital is back on the agenda – From April 2022, the plan is to introduce MTD to all VAT registered businesses including those who have voluntarily registered and have a turnover below £85000.
From April 2023, smaller businesses and landlords will also be included as Making Tax Digital will be introduced to taxpayers who file self-assessment tax returns for business or property income over £10,000 per annum. So basically at some time in the future if you currently file with HMRC you will need to file regularly using digital software. You can find the government update here.
Cloud Accounting
I know what you’re thinking – 2022 and 2023 seem ages away but why not embrace the change early? Digital software will not only make you compliant in years to come but it will also help you run your business better. There are various cloud accounting packages available that can help save you time and complete tasks on the go such as raise invoices and store all of your receipts digitally so that you never lose any paperwork again. Rather than trying to guess how your business is performing, you can see what profit you’re making as often as you’d like with real-time information available to you at the press of a few buttons.
Added Extras
A wide range of add-ons and apps allows you to record mileage, snap and send receipts direct to your accounts, raise invoices, take credit card payments and automate credit control including chasing debtors. All these are available to save you time, ensure you are compliant and give you the business details you need when you need them.
There are so many available that suit particular businesses or business activities and they are there to make your life easier, more organised and less stressful! We would be happy to introduce you to some of these apps and add-ons that best suit your business activities.
Security & Storage
Because the cloud accounting packages are cloud based you don’t need to worry about security or backups. Everything is hosted in a secure environment and accessible from a variety of devices, laptops, home computers, tablets and apps for phones.
As long as you have internet access you can log in to your data using a variety of platforms. The data stored in a secure environment and not on your ‘local’ laptop or PC meaning you don’t have to worry if you laptop or PC goes wrong. All your data is safely stored remotely ready for you to log in and access.
Haines Watts
We can recommend a variety of accounting packages to suit a wide range of businesses and business owners. We will help you get set-up and provide training so you can get the info you need when you need it, raise invoices and automate bank transactions.
Experience tells us that once you have set up your cloud accounting software and been using it for a few months you’ll be wondering why you didn’t do it before! If you’d like to find out more about the upcoming changes and beat the crowd then please contact us and we’ll be happy to discuss your options with you.
