But it is not just about efficiency that we are introducing the digital record keeping and reporting systems, we do this in compliance with HMRC’s current policy of Making Tax Digital (MTD). According to HMRC the key benefits of this policy includes:
- always knowing where you stand when it comes to tax.
- having access to tax information online in a single place.
- being able to work online collaboratively with an agent.
- being able to plan and budget more effectively.
As per the HMRC timeline, this is not mandatory yet. Businesses (including self-employed and landlords) are only advised to keep records of their income and expenditure digitally and send summary updates quarterly to HMRC from their software (or app) from this month (April 2018) if they choose to do so. However, it still makes sense that we go digital, saving us time and stress further down the line.
From 1st April 2019, it becomes mandatory that businesses with a turnover above the VAT threshold (£85,000) will have to keep their records digitally (for VAT purposes only) and submit their VAT return information to HMRC through Making Tax Digital compatible software including Quick Books. And from 1st April 2020, those earning over £10,000 annually but are under the VAT threshold will join the Making Tax Digital
We strive to keep you right up to date with legislation and industry trends, and always look for opportunities whereby you can maximise your profits and minimise tax liabilities. So, we will let you know if there are any further changes.