May 08, 2018
Making Tax Digital is a new legislation aimed to update the tax system over the next few years. MTD impacts multiple areas of taxation including self-assessment, VAT, corporation tax and business tax. From April 2019 VAT regulations will be the first to change and it is important that your business is prepared.
From April 2019, businesses with a turnover that is above the VAT threshold (£85,000) must maintain digital business records, and submit their VAT return through the new MTD system. You will no longer be able to manually enter your VAT figures onto the HMRC website – you have to submit them directly from authorised software.
If you own a business that is VAT registered you will need to move to digital record keeping, or if you do not yet use software to record your VAT information, you need to start planning for MTD. If you own a business that is not VAT registered, then you have the option to record digitally however you can gain updated tax income estimates whenever you want, which will help you with cash flow forecasting.
When Making Tax Digital comes fully into force, it will make annual tax returns simpler. Every three months you will be required to submit your tax data, making the process much more efficient than submitting it annually. Having computer software rather than paperwork will mean that your money will be recorded automatically, all you need to do is check the data and update it in to HMRC every 3 months.
At Solutions, we want to help our customers adapt their technology to ensure that the transition to the new digital tax system runs smoothly with minimal setbacks. We will support you during every step and will ensure you understand exactly what MTD means for you and your business.
Sage 50cloud, Sage 200cloud and Sage Financials are all MTD for VAT compliant. Upgrade to the latest versions of these solutions to ensure that you’re ready in plenty of time, before the April 2019 deadline. At Solutions our experts will help you upgrade, we are in constant contact with Sage so we are able to give you clear direction as soon as possible.
Going through changes within your business can often be daunting and adapting new technology can be a challenge. However MTD could be great for your business as updating your accounts more often will enable you to react faster to opportunities.
If you have any questions about Making Tax Digital for VAT and how it may affect your business, or would like to learn more about upgrading to the latest solutions please contact us today on 0115 840 5075 or email firstname.lastname@example.org to speak to our experts.
Written By Lily Jones
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