What is Making Tax Digital? How will it affect your business? What do you need to do?
If you are a VAT registered Company, and you are over the VAT threshold, you will have to file your VAT return through Making Tax Digital (or MTD as it’s called by those in the know) compatible software by April 2019. You’ll also be required to keep all your VAT records in digital format.
It’s being introduced to help get VAT right the first time by reducing the chance of errors happening via manual processes. It’s also better for record keeping.
What can you do now?
1.Get prepared – If you aren’t already on a compatible system then you need to start looking at providers and thinking about how you can migrate across to an online system. We recommend Xero Accountancy software but there are, of course, other providers out there.
2. Invest in Quality Training – Once you’ve decided on a software package you need to make sure that everyone using it is properly trained in the system. A good trainer will take the time to understand your business and your needs and tailor the training to you. They should also offer some follow-up support to help with questions in the early days.
3.Outsource – Alternatively you can work with a Company who will do all of this for you – making life much easier. The company should take the time to understand your business and the accountancy and financial systems that you use before implementing an online system (preferably tailored to meet your needs), training your and your staff (if applicable) to use the system and giving follow-up support. Some Accountancy Companies can manage the system for you, do your bookkeeping, provide management reports and much more – whatever you need to run your business most effectively.