From April 2019… next month… VAT is going digital!
The new rules require every business with a turnover greater than the VAT threshold (currently £85,000 pa) to keep VAT records digitally. Plus, their VAT returns will have to be filed using software or spreadsheets that comply with Making Tax Digital (MTD) requirements. (At Spicer & Co, we recommend using Xero accounting software.)
VAT is the first tax to adopt this new approach to filing returns and keeping records. All other taxes – such as income tax and corporation tax – will eventually be included for businesses and individuals with an annual turnover of at least £10,000.
Businesses with voluntary VAT registration (turnover less than £85,000 pa) may choose whether to continue with HMRC’s current online ‘Gateway’ system or join Making Tax Digital. (Please read our earlier article for full details about Making Tax Digital.)
Are you affected by Making Tax Digital?
If so, you need to use online accountancy software. If you are not already doing this, start investigating the options… now!
“Online accountancy offers great opportunities for businesses, independent of the Making Tax Digital requirement,” explains Suzanne Spicer, Chartered Accountant. “It also gives business owners the advantage of understanding the current business finances, rather than looking at retrospective figures. It saves a huge amount of time too!”
Would you like to know more?
Spicer & Co Chartered Accountants work with clients across Luton, Dunstable, Houghton Regis, Leighton Buzzard and beyond. As the number one firm of accountants in Luton and Dunstable using Xero, we are perfectly placed to help you with online accounting as well as Making Tax Digital.
As well as being online accountancy and tax experts, we also appreciate great coffee. If you have any queries about making Tax Digital and how it may affect you, let’s talk. We’ll put the kettle on! No obligation, no jargon, just friendly advice.