Making Tax Digital Are You Ready …

From April 2019 HMRC’s free VAT filing service will be withdrawn, so what does this mean for you?

Firstly you will need to determine whether you will be impacted from April 2019 or if you will not be affected until at least 2020.

Well, simply put, businesses will have to move away from filing their VAT Returns through the HMRC portal and move onto filing them through a bookkeeping solution that has the capability to file directly with HMRC. Everything else by and large is staying the same. For a lot of businesses this will mean no change to your current process. For others a slight deviation from producing the VAT Returns on your bookkeeping software and filing through the portal, to filing through the software itself.

To the remaining businesses who have not ventured onto bookkeeping software, this will probably seem, a daunting task for most. According to HMRC it 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. We are not sure HMRC considered learning how to use a new piece of software for some businesses when they decided it will make it easier. Businesses should however take comfort that they do not have to go through this change alone.

A lot of Accountants are promoting certain software providers and really driving clients down their own preferred route. As a business you need to consider what you want from your software and which software provider can provide this before making this transition.

If you are one of the many businesses that will have to take your first step on the ladder to moving on to bookkeeping software, come and speak to us. We will sit down and listen to what you require and what you want from the software. We will then advise on which software we would suggest based on your requirements and budget. We can then work with you on setting up the software and provide training to you to maintain it yourself. Alternatively we can provide a quote for us to maintain the software for you and an agreed procedure of what you will need to provide and what we will produce in return. Whichever route you decide we will provide an agreed fixed quote that will not automatically increase each year.

We believe that it would be beneficial for most to make the transition now so that you are ready before the implementation date. If you get this right now, it will also make your life a lot easier in the future as making tax digital gets further implementation after April 2020. This begs another question – what further implementations?