How you manage your VAT is changing…
Digital accounts will be mandatory, you will have to file all your VAT returns using Government approved software, so now is the time to take your business online and make it work for you before the deadline.
…will you be ready?
So what does it mean for you and your business…
Making Tax Digital, the Government’s initiative “to simplify things for businesses” and generate £1.9 billion for the tax man has changed a number of times since it was first announced. BUT now with the first big date only just around the corner, you can’t ignore it and hope it will go away anymore.
By April 2019 all businesses with a turnover above the VAT threshold (currently £85,000) will have to submit their quarterly VAT returns via Making Tax Digital software NOT the current Government Gateway.
Your business must have government approved cloud accounting software in place in order to file your VAT returns after April 2019.
Don’t leave it until the last minute…
With over 2.6 million SME’s all having to submit their quarterly VAT returns via making tax digital software in 2019, there’s a lot of scope for something to go wrong.
Your business is at risk of surcharges and penalty payments from HMRC if you don’t submit your VAT return on time or you don’t pay the right VAT amount by the deadline.
Why take the risk?
Start now… moving onto cloud accounting software couldn’t be easier. BUT it doesn’t happen overnight, you need to give you and your business time to adjust to the new way of doing things before you start sending your VAT information to HMRC. Remember HMRC isn’t that forgiving if you send the wrong information.
There is an upside to this change, as well as being able to comply with the Government’s Making Tax Digital requirements your business will have an easy to use, seamless financial process, giving you instant access to accurate and up to date data. Providing you with timely information to drive real insight into your business.
How do you prepare your business for MTD?
- If you’re not already, get your business online. Online accounting packages while preparing you for Making Tax Digital will also add a lot of value to your business—accurate, real-time information linked directly to your bank resulting in better, more informed business decisions.
- Get prepared for the extra work involved, for example, an individual operating as a sole trader who also has a property business would need to make eight quarterly returns! Speak to your accountant about the best way to manage this.
- Quarterly returns will have to be filed within 30 days of the quarter end, you don’t want to be rushing every quarter so get organised NOW. Work with your accountant to identify and install the right processes within your business so that they are running smoothly by the time you go live.
- In March 2017, the government published a further consultation document on the proposed model for late submission penalties and on penalties for late payment of tax. They have yet to confirm what the penalties and changes will be – DON’T GET CAUGHT OUT, GET READY NOW.
Call us now on 01476 862 172 for a free, no-obligation meeting.