How to get ready for Making Tax Digital
As a business owner, you will more than likely have heard about the Making Tax Digital initiative from HMRC. At Kirkwood Wilson, we understand that this can be a lot of information to process, so we have put together a handy guide. Here, we answer your questions about how to get ready for Making Tax Digital and how our team can help you and your business to prepare.
What does Making Tax Digital mean?
Making Tax Digital is a compulsory measure put in place by HMRC that requires a business’ financial accounts to be digitalised. A business must keep digital records, and submit returns digitally to HMRC.
When is Making Tax Digital being introduced?
Making Tax Digital comes into action in April 2019. This means that there is no better time than the present to get your manual records digitalised and move forward with digital accounting. The clock is ticking and it’s time to enlist the experts to start your transition.
How will Making Tax Digital affect you?
If you are a VAT registered business with a turnover of £85,000 then Making Tax Digital applies to you. By the deadline, it is mandatory to keep digital records and file your VAT return through MTD compliant software. That means no more manual record keeping, it is time to embrace digitalisation.
If you are under this threshold, however, it isn’t time to sit back and ignore the MTD deadline. It is expected that Making Tax Digital will be rolled out to other types soon after, so it is better to prepare now.
How does Making Tax Digital work?
The purpose of Making Tax Digital is to make it easier for you to record and file your tax. The government’s aim is to be one of the most digitally advanced tax administrations in the world. The outcome of digitalisation is an automated process that should result in fewer errors when recording your tax.
All in all, it is designed to save you time when it comes to your accounts. Having all of your information in one, easy to use place will benefit you and your business in the long run.
Who can help you to transfer your accounts to digital-based software?
At Kirkwood Wilson, we have MTD specialists within our team. They are more than happy to review your accounts and advise you on the best practice going forward. A Making Tax Digital consultation with Kirkwood Wilson will reassure you on the steps to take towards digitalisation.
We can recommend the best software for digital accounting, as well as assist you in making this change. We also have a Making Tax Digital clinic, hosted by our specialists, where you can ask any questions about the upcoming deadline.
Is Xero MTD compliant?
Xero is compliant with the requirements of Making Tax Digital. This software is exceptionally easy to use and has you covered for all mandatory requirements. Xero has everything you need to keep track of your accounts digitally.
How long will it take me to get digital?
Come in and speak to our team! We will review your account and let you know how quickly we can get you digitalised.
For more information about our digital accounting services, or for a Making Tax Digital consultation, contact Kirkwood Wilson today. Call 01704 546 000 or email firstname.lastname@example.org.