If you are still managing your accounts and preparing returns on Excel spreadsheet, or perhaps even with pen and paper, the Making Tax Digital initiative will require you to move your processes to a more modern system.
Initially only affecting businesses above the VAT threshold, Making Tax Digital will bring more businesses and more taxes under its jurisdiction from 2020...
So even the smallest of operations, one-man bands and freelancers will need to join the digital revolution sooner or later.
Now is therefore the time to start exploring your options, and at Inform, we’re here to help you do just that.
Your first step in complying with MTD will be selecting the right software or platform for maintaining your digital records.
Most of the major software providers including Sage and Quickbooks will be providing some MTD functionality, but these predominantly desktop-based programs do have their drawbacks when compared to cloud platforms like Xero.
Regardless of your choice of platform, you’ll also need to decide on how your relationship with your accountant will work moving forward - will you self-manage your tax returns, or engage your accountant to do it for you?
If you choose to switch to Xero, there are two ways in which we can help you fulfil your MTD requirements.
1. We can either offer a book-keeping service, under which we will maintain your records and complete MTD filings on your behalf.
2. We can simply provide set-up, training and support on Xero, giving you the tools and knowledge you need to self-manage.
You may, of course, choose to keep your records on a different MTD-compatible platform, in which case we can still support you in a range of other ways - but you’ll miss out on some of the major benefits cloud accounting can bring…
If you’re unfamiliar with Making Tax Digital, and you want to know what it is and how and when it will affect your business, just give us a few minutes of your time and we’ll explain all in our latest guide.
Watch our latest webinar with Sian Kelly from Inform as she takes you through a step-by-step guide covering everything you need to do to prepare for Making Tax Digital.