Making Tax Digital – summary
HMRC has recently delayed the introduction of Making Tax Digital for certain taxpayers, but it is still very much in their plans. HMRC proposals mean the end of the annual tax return and the filing of information digitally on an ongoing basis. This means that how individuals and taxpayers interact with HMRC will be undergoing significant changes over the coming years.
From April 2019 all businesses with an annual turnover above the VAT threshold (currently £85,000) will be required to start keeping digital records for VAT purposes. This essentially means that your accounts will need to be stored digitally. This will be a significant change for a number of businesses. It will move the way HMRC wants information from taxpayers away from existing desktop and manual record keeping.
Further plans are currently being developed by HMRC with a view to a wider implementation sometime after 2020. We believe that all business should consider the benefits of cloud based accounting systems and the benefits it provides, especially when it comes to future proofing their accounting process against the ongoing changes being introduced by HMRC.
Start planning for Digital Tax now and be ready. We are experts in cloud accounting software and can provide our clients with the best possible fully compliant accounts packages designed for small and medium sized business.
If you are good to go, call us and we will be delighted to help you go Digital and take your business to a whole new level.