Many small to medium sized business owners have seen and heard about MTD but how many really understand what it means and the impact. Are you ready?
What is MTD?
In 2015, the UK Government announced an initiative to digitise tax in the UK. The goal is to make it easier for businesses to get their tax right and keep on top of their affairs by interacting digitally with HMRC. There have been a number of changes to requirements and deadline along the way, but we now have some very clear information
Making Tax Digital (MTD) will begin with VAT in April 2019.
It will apply to businesses above the VAT threshold of £85,000.
Businesses will need to file VAT returns using commercial accounting software and will be obligated to keep digital records of their transactions.
After April 2019, MTD will apply to all VAT registered businesses with a taxable turnover above the VAT threshold. The most beneficial way to move forward with MTD is by adopting a cloud based accounting software package. We are currently working with XERO, SAGE and Quickbooks to move our current and new clients to appropriate software for their needs.
Research has shown that digital accounting software can result in cost savings of £17,000pa for SMEs. You’ll also enjoy a more streamlined process, reduce admin, and work seamlessly at the office or on the go.
The ultimate vision for HMRC is to use MTD to solve the following issues:
No more repeat information. Digital accounts mean you won’t need to submit the same details twice.
You’ll have access to the information that HMRC holds and be able to check everything is correct at any time.
Know what you owe. With digital tax, HMRC will collect and process information as quickly as possible to help prevent errors and stop your tax due or repayments from piling up.
One stop for liabilities and entitlements. Access a comprehensive financial overview of your digital account, similar to online banking.
As a Xero Certified partner, CJ Gemini Ltd has chosen Xero as our first choice for online accounting submissions, however, we will look at each business individually and determine the needs before making a final recommendation.
Many of our clients love using Xero to manage their bookkeeping being supported by ourselves or many decide to leave it to us to manage so that they can focus on the areas they are best suited. We are flexible and accommodating.
So why have we chosen Xero as our first choice?
More than 300,000 subscribers across the UK and more than one million subscribers around the world do beautiful business with Xero. Xero helps businesses save time on admin and get paid faster. You can login anytime on your PC, Mac, tablet or smartphone and see up to date financials. And we can do the same, which means we’re able to advise you based on real-time, up-to-date financial information.
Contact us We’d love to chat through your options, so please get in touch soon to arrange a time to speak. We’d love to hear from you