Making Tax Digital - Are You Ready?
In July 2017 HMRC announced that all businesses and individuals will eventually have to file their accounting information digitally.
What does this mean?
From April 2019 businesses with turnover over the VAT threshold (£85,000) will need to keep their records digitally for VAT purposes and submission of VAT Returns. It is likely all businesses will be required to keep digital records shortly thereafter.
This changes the way HMRC wants information from taxpayers and means that you will need to move from your existing desktop or manual recordkeeping to an online, compliant accounting software that meets with HMRC’s Making Tax Digital (MTD) requirements. The good news is we are certified in the set-up and operation of such online accounting software specifically designed for small and medium sized businesses.
What are the advantages of going digital?
Digital accounting software has significant advantages over the traditional ways of bookkeeping.
• See a clear picture of your current financial position, in real-time
• Have your bank feed your data directly into your accounts on a DAILY basis
• Take a photo on your phone of a purchase invoice and have it posted automatically
• See your profit, monies owed and your business bank balance 24/7 from your phone
• Create and send invoices easily on the go and make sure you are paid on time
• Track your sales and purchases, debtors and creditors, and manage your suppliers
• Estimate your tax and quarterly VAT payments so you are prepared
• Easy tax filing that matches HMRC requirements for MTD
• Keep on top of your cashflow so you can budget effectively
• Create estimates, purchase orders and manage your stock
• Discard your paperwork to save space and help the environment!
Want to know how FUSE Accountants can help you seamlessly transition to a cloud based accountancy system? Click here to find out more.