Making Tax Digital (“MTD”) is a new initiative from HMRC, aimed at making the UK’s tax system one of the most advanced digital tax administrations in the world.
Initially to be introduced from April 2019, MTD is designed to make it easier for both businesses and individuals to pay the right tax - and to gain better visibility of what you owe throughout the year.
It means that whether you are a one-man band or a corporate giant, your business will soon be required to maintain digital records and
submit your information to HMRC using compatible online software such as Xero.
So, if you’re still recording your accounts on paper or spreadsheets, or even on desktop-based accounting software, things are going to have to change.
Handily, we’re here to help provide a seamless switchover to the digital age. As the leading Xero accountants in Birmingham, a Platinum Xero Partner and a member of the Making Tax Digital Pilot Scheme, we like to think you’re in pretty good hands…
The scheme goes live in April 2019 and will initially require all compulsorily registered businesses with turnover over the VAT threshold (£85,000) to file their VAT information online on a quarterly basis.
VAT registered businesses with a lower turnover will not be mandated in this first wave, but can choose to opt in should they wish.
While an exact date for other tax requirements is yet to be set, it’s expected to land shortly after April 2020 - at which point all small businesses could become mandated.
That’s why it’s important to make the digital switch as soon as possible, to ensure you hit the ground running when the deadline arrives.
While HMRC is set to provide some free basic software to help businesses comply with the new regulations, the compulsory digital switchover is the perfect time to move your accounts to a Cloud platform like Xero.
As well as helping you fulfil your Making Tax Digital obligations, Xero brings you a whole host of benefits that help you build your business - and thanks to our years of experience with the programme, we can help get you set up with a minimum of fuss.
Even if you’re currently using Sage or Quickbooks to manage your accounts, we can provide a simple transition to Xero, using third-party applications to seamlessly transfer your data between systems.
Move your accounts to Xero with us, and you’ll wonder how you ever lived without it.
You’ll be able to manage your invoices, expenses and cash flow in real time, accessing your accounts from anywhere with an internet connection - and you’ll be able to produce insightful charts and reports at the touch of a button.
And, because your accounts will be hosted in the Cloud, we’ll be able to view your information in real-time too - meaning we can offer the kind of pro-active, timely financial advice you need to really boost your bottom line.
It’s not just about Maxing Tax Digital, it’s about helping business thrive.
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.