Introduction to Making Tax Digital
Making Tax Digital is an attempt to do exactly what its name suggests. Instead of filing one large set of documents, once a year, small businesses will have to keep electronic records of their accounts (using HMRC MTD approved software) and file their tax information digitally, on a quarterly basis. Businesses will no longer be able to use HMRC software for filing VAT Returns as this will not be available.
HMRC may decide to carry out an inspection on your accounts to ensure your records are being kept in the correct manner.
Because Making Tax Digital comes in for all VAT registered traders from April 2019 we are ready to migrate Sage Line 50 clients to Sage One Cloud online. Here at BACAccountants we want to make this change as easy and stress free as possibly for you, so we encourage you to come to the office to discuss how Making Tax Digital will affect you or telephone to discuss this.
A Few Key Points about Making Tax Digital
- Making Tax Digital will mean manual records will no longer be acceptable.
- VAT sales and purchase transactions must be stored digitally.
- Manual keying-in VAT return data from spreadsheets into HRMC’s online portal will have to cease.
- You will be able to set up a direct Bank feed which will automatically input your bank transactions into your accounting system.
- You will be able to access the system remotely or from your iPhone (or similar device).
- If you wish you could prepare and send Sales invoices from your iPhone whilst away from your office base.
There is no need for you to purchase any software as we have already done this, in anticipation of these changes, and this comes at a very reasonable price of only £10 plus Vat per month which is what it is costing us. You will after signing up to Sage One, through BACAccountants as we are agents for Sage, receive an email from Sage asking you to verify the email address and allow Sage to release the software for you to use.
Please get in touch with the office to arrange a time to pop in for a chat and to sign up at this bargain price for this appropriate software in plenty of time and before the actual deadline. Don’t leave this until the last minute as we may not have any systems left at this bargain offer price – FIRST COME FIRST SERVED.
We look forward to hearing from you.