Making Tax Digital for business, is a Government initiative that will pool all your tax information together in one place, online. The aim is to allow business owners the opportunity to view how much tax they owe – or are due back – at any point throughout the financial year.
The scheme should provide:
Accurate Tax Information – digital tax accounts can be verified immediately, in real time; rather than sifting through paper based records.
Reduced Errors – the real time aspect of Making Tax Digital will allow HMRC will to work with your tax information almost immediately, reducing human error from incorrect data input.
Making tax digital should also be:
Easier to understand – HMRC anticipates taxpayers will better understand how much tax is owed from viewing their digital tax account – akin to online banking.
Easier contact with HMRC – online access will make it easier for to contact HMRC via webchats and secure messages.
The following timeline information is for guidance only, and may be subject to change.
April 2018 – Quarterly reporting starts for businesses with turnovers more than the VAT Registration Threshold of £85,000
April 2019 – Quarterly reporting starts for businesses with turnovers below the VAT threshold of £85,000. Digital quarterly reporting for VAT also begins
April 2020 – Quarterly reporting for all companies
HMRC have not provided software to allow business owners to report their accounts online, therefore we are proud to be a fully accredited supplier of Intuit Quickbooks.
This software and a variety of others, including but not exclusively – Xero, Kashflow and Sage, provide the tools required to manage your business records digitally.
We have invested in training and developed comprehensive support services to facilitate the change for our client’s business’.
To discuss the scheme in further detail, please call 0141 816 9750 or complete the contact form.