This year, HMRC began the introduction of its new Making Tax Digital regulation – an overhaul of the tax system that will see the entire process digitised, and is being rolled out in stages between now and April 2020. You can find out more about the basics of Making Tax Digital in our introduction to the topic – but the scheme’s staggered rollout means that the situation is changing all the time.
Here, we outline the latest updates to Making Tax Digital, and explore how implementing Xero accounting software could be the solution your business needs.
Could MTD Affect Your Bookkeeping?
As Making Tax Digital is being implemented in stages, the deadline for businesses to make the digital changeover will depend upon their current tax arrangements. For businesses registered for VAT, with a taxable turnover above £85,000, the deadline is April 1st 2019.
This deadline will also apply to businesses whose VAT QE is 30th April 2019, but will not apply to businesses who are voluntarily registered for VAT. HMRC will not have access to all VAT data, as they will only be privy to the 9 boxes in the first phase.
Following their MTD changeover date, all effected companies will have to keep their records and file their VAT returns electronically, and will likely be required to update their bookkeeping processes in order to remain compliant.
How Xero Accounting Software Can Help Your Business Navigate MTD
For businesses who are looking to update their processes to comply with the new regime, cloud accounting is one of the most effective solutions available. There are a number of cloud-based accounting platforms that are currently MTD compliant, but at Dua & Co we believe that selecting Xero bookkeeping software is the best way to streamline your business and boost performance by providing timely financial information.
As well as allowing you to store and view all of your records securely online, and access real-time information remotely at will, Xero can also be used to file your VAT returns – thereby keeping you fully compliant with the new regulations set out by the Making Tax Digital regime.
How Can Dua & Co Help?
Here at Dua & Co, we know that completely overhauling the way you run your business can like a daunting task – but it’s also a task that carries significant potential to strengthen your business, and automate where possible. As a team of experienced accountants, business and Xero advisors in Watford, we are available to help you implement the new system with ease, and even improve your operations along the way.
We are especially proud to be a Platinum Champion Partner of Xero – we have the expertise and resources necessary to help you implement and make the most of Xero accounting software in every aspect of your business, from bookkeeping to tax.
Arrange a free initial meeting and we will guide you through the finer details of Making Tax Digital, as well as what your company can do to be MTD compliant. For an initial fee, we can provide you with a review of your record keeping and educate you on the digitisation process.
Please get in touch to find out how we can help make your business a success.