Making Tax Digital
As of April 1st 2019, the way you need to submit your VAT to HMRC has changed.
Making Tax Digital is a key part of the Government's plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
This is going to impact other types of taxes in the near future. So please get in touch so we can discuss how you can prepare before or after the deadline!
What is Making Tax Digital
Making Tax Digital is explained by the following four foundations;
Better use of information – customers will not need to report to HMRC information that it already has, or is able to get elsewhere, such as employers, banks or other government departments. The digital tax account will allow you to check that the information HMRC is holding is complete and accurate.
Tax in real time – you should no longer have to wait to the end of the tax year or longer to know how much tax you need to pay, the new system will operate as close to real time as possible.
A single financial account – At the moment you cannot see a single picture of your liabilities and entitlements in one place, this will be changing and will be similar to online banking.
Interacting digitally with customers – customers and agents will be able to interact with HMRC digitally and at a time to suit you.
How Can Cloud Based Accounting Software Help?
At Allchurch & Co we encourage using Cloud Based Accounting Packages to manage your business.
This will ensure you are ready for Making Tax Digital and there are many advantages you will benefit from, such as;
Ease of access – Cloud based packages allow ease of access as you can log on remotely, via smart phones and while you are out and about not only when you are in the office.
Low cost – It is a relatively low cost accounting solution with no large up front investment which is paid via a monthly fee.
Real time financial information – Keeping your cloud based accounting software up to date means you will have much better information for decision making and cash management as at a click of a button you will know how much your debtors owe you, or how much you owe to your creditors.
Back up and data security – Cloud based packages provide you with peace of mind that your data is safe and secure.