5 Things every business owner should know about Making Tax Digital

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In 6 months time, taxation will finally be keeping-up with the rest of us, and will be becoming digital. Now, 6 months seems like a lifetime away, doesn’t it? But, with the kids back at school, already everyone’s focus has shifted to Christmas. The days are whizzing past rather fast and, truth is, (much to my utter dismay) we will all be singing jingle bells in silly jumpers before we know it….and only a few months after the big ‘C’, we will have to be ready for the Making Tax Digital (MTD) extravaganza on the 1st of April – joy to the world!

So, while we are still enjoying the last of 2018’s light evenings and sunny afternoons, let’s cast our minds away from Linda’s Christmas Party ideas and look a little further on to Spring 2019. To help, here are some top tips for making the transition to MTD,

1)      Say ‘VAT’ now!?

First off, MTD will not impact all of us, so a great first step is fully understanding if these changes will even impact you and your business. The question is, ‘Are you a VAT registered business?’, if the answer is yes, then these changes will affect you. If you are close to becoming registered or want to voluntary register then this will also affect your business.

 2)      Don’t panic!

If you answered ‘Yes’ to the question above, no need to worry. There is ample time to make provision and get organised. You are already thinking about it, impressive!

 3)      ‘VAT’s’ the time?

So does everything change for businesses on 1st April 2019?? For some yes and for some no.

 It’s the first VAT return with a start date after the 1 April 2019, so if your VAT quarters end in March June, Sept and December it will be the 1st April.

 If your quarters end April, July, October and January it will be 1st May and if your quarters end May, August, November and February it will be 1st June 2019

 4)      Go from Xero to Hero’

Know how to deal with the changes – there will be no free software from HM Revenue & Customs to submit a VAT return unlike there is with your personal tax return. So, the right package will have to be found. Using a simple bookkeeping package like Xero, (www.xero.com) will not only get everything sorted for MTD but will also modernise your accounting function and improve the management of your business.

 5)      Talk to the experts….and now is a great time!

We are Xero certified partners and will be happy to demonstrate the software and how we work with it so that you have a greater understanding of your business as well as being compliant for MTD.

Just think how much more you will enjoy Linda’s meticulously planned Christmas party, safe in the knowledge you have nothing to worry about with MTD in the spring.

Give us a call to explore what MTD means for you…..we promise we won’t mention Christmas.