From April 2019 all VAT registered businesses with turnover above the VAT threshold will be required to maintain digital records and will need to send their VAT information to HMRC using third party commercial software. HMRC’s online portal will remain available to all other businesses that complete a VAT return but have turnover below the VAT threshold.
What does this mean for me?
The simplex D books are soon to be a thing of the past! From April 2019 you will have to keep your records digitally which can either be in the form of cloud accounting software or spreadsheets.
I already use spreadsheets, so how does this affect me?
You will no longer be able to submit your VAT returns by logging in to HMRC’s gateway so will need to use bridging software, along with spreadsheets that are formatted in a particular way. There remains uncertainty as to how this will be priced, when it will be available and what formats will need to be followed.
So what do you recommend?
We are recommending that all clients who will be affected by Making Tax Digital look to cloud accounting solutions for your bookkeeping. There are a huge number of benefits that can be enjoyed through utilising the technologies available. They include:
Create, send and track sales invoices
Invoice on your mobile
Take online payments
Pay bills on time
Submit VAT returns directly to HM Revenue & Customs
Business performance dashboard
Maintain a fixed assets register
Store your back up documentation online
We recommend that you start looking towards the cloud as soon as possible so as to have any kinks ironed out in time for April 2019 and so that the transition runs as smoothly as possible.
Where do I even start?
Get in touch with us, we have cloud accounting experts with years of experience, who have spent countless hours reviewing the software available and are ready to take your call and make some recommendations. We offer cloud accounting workshops and one on one training as part of our services to make sure that you’re ready for making tax digital and are completely comfortable with your new bookkeeping package.