Cast your minds back to 2015. Hopefully it was a good year for you, with some great memories.
For us in the accountancy world, something very significant was announced. Following the budget, the Government decided to lay out it’s vision for a ‘really simple’, ‘easy to use’ transformed digital tax system – Making Tax Digital (MTD).
As businesses, you’ll know that big transformations are rarely really simple and easy. Also, in fairness to them, they didn’t know we’d be exiting the EU, therefore it hasn’t been a huge surprise that target dates have slipped.
At Whyfield we certainly don’t think HMRC is joking that from 1 April 2019 all businesses over the £85,000 VAT threshold will need to submit their VAT returns digitally. So if you are over the threshold, we’d recommend getting your ducks in a row. If you are under the threshold, our advice is the same; you just have a year longer!
The current thinking is that Corporation Tax and Income Tax elements of MTD will follow, possibly in 2020, once the VAT systems has been tested and flaws have be ironed out.
We’ve been helping our clients move over to digital records ever since the 2015 announcement. They are seeing clear business benefits in terms of transparency and speed of information and they are also pleasantly surprised at how affordable systems like Xero, Sage, Quickbooks are. You’ll also notice these providers have stepped up their advertising as the first deadline approaches.
The Whyfield team can help you to find and set up a suitable digital record keeping system that meets your needs. We can also teach you how to use it and provide ongoing support, so that you are ready for these changes ahead of time.
If you’d like to talk about digital tax in more detail, feel free to give us a call, we’ll be happy to help: 01872 267 267