Making Tax Digital
HMRC is making one of the biggest changes, in 20 years, to the way you file your financial figures with them.
The plan is to stage the dates that you must comply, starting in April 2018 with sole traders, partnerships and landlords with turnover in excess of the VAT threshold (currently £85,000) being affected first.
All other sole traders, partnerships and landlords (with turnover in excess of £10,000) are within the new regime from April 2019 and all limited companies from April 2020.
How does this affect you?
The idea is that all online filings will be automatically filtered into your online account with HMRC so you can see, in real time, your estimated tax liabilities which will result in no unwanted surprises regarding tax liabilities at the end of the year.
There are some extremely useful benefits of this. For example, at Robson Laidler Accountants Limited we are able to provide you with advice and support to help you manage and expand your business, using this timely real-time data, and so enable you to react to problems quickly or focus on and develop the strengths.
What you will have to do?
The guidance released at the moment is that submissions MUST be made on a quarterly basis (or sooner if you like) via computer software. This means if you still maintain your records manually using cashbooks or excel then you will be forced to change to a new system to comply. HMRC have not yet confirmed what data they want to be submitted but it is expected that it will resemble the information currently requested on your annual tax return.
There are several cloud based providers in the market at the moment which work on desktops, laptops and tablet pc’s so they can accommodate most business owner’s hardware. We work with several cloud based software providers to give you a fully tailored service devised especially for your needs.
How can we help?
Our purpose is to improve the lives of our clients. We do this by talking to you, finding out what really matters to you and fitting a friendly, personal and professional service around what is important to you. That could be business growth, protecting your assets, securing your wealth for your family, ensuring you don’t overpay tax.
We can support you in meeting your obligations under the new MTD regime whether that means maintaining your records for you and doing the online submissions on your behalf or reviewing your monthly bookkeeping to ensure submissions are made on time and are accurate. We can also assist with setting budgets, reviewing controls, systems and processes and advising you of improvements and efficiencies and much more.
If you are affected by this new change or have any concerns, please get in touch with one of our team who will be more than happy to guide you through the new reporting era.