Making Tax Digital
What is making Tax Digital?
At Budget 2015, the government set out its vision for a transformed tax system, and in December 2015 it published the Making Tax Digital roadmap. This set out the government’s plans to make fundamental changes to the tax system – transforming tax administration by 2020 so it is more effective, more efficient, and simpler for taxpayers.
What does this actually mean?
From April 2019, VAT registered businesses (including self-employed and landlords) with a turnover above the VAT registration threshold (currently £85,000) will have to:
- keep their VAT records digitally
- provide their VAT return information to HMRC through Making Tax Digital compatible software
For other businesses the implementation date will be delayed until at least 2020, but that is not far away so consider getting prepared now.
Rosemary Bookkeeping work with a variety of MTD compatible software providers, so we can find just the right solution for your company.
What are the advantages of going digital?
Digital accounting software has significant advantages over the traditional ways of bookkeeping.
Imagine if you could:
- See a clear picture of your current financial position, in real-time;
- Have your accounts 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available;
- Avoid upfront accounting software costs – upgrades, maintenance, system administration costs and server failures are no longer an issue;
- 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 it was posted automatically; AND
- See your results, who owes you money, who you owe to and your business bank balance 24/7, 365 from your phone.
What software can I use?
Most main stream accounting packages will be Making Tax Digital compliant, Rosemary Bookkeeping work with most of them, if you already use a compliant accounting package we can work with you to get your records ready and up to date or we can help you decide on which is the right package for your business. See our Software page for more detail about the accounting packages we work with on a regular basis.
Contact your nearest Rosemary Bookkeeper to find out how we can help you be ready for making Tax Digital and how we can help with your bookkeeping on a regular basis to ensure your returns are completed on time.