There is a revolution coming...
Those wonderful folk over at HMRC have come up with a digital reporting plan that will affect the majority of businesses by 2020. This new scheme is called Making Tax Digital (MTD)
Every tax payer in the UK will be provided with a digital tax account (a personal account for individuals and a business account for businesses). These tax accounts are then capable of having digital information fed directly into them from software products and payroll systems. Essentially this is a good thing as it means that info will be kept in one place rather than several different ones.
However, HMRC also wants all businesses to switch to quarterly reporting. So, instead of preparing everything once a year it will soon be 4 times a year. HMRC also advise that spreadsheets will no longer be an acceptable format to be keeping records and want to guide everyone towards software options that can feed directly into their digital tax accounts.
The latest schedule we have from HMRC is;
For smaller businesses and sole traders this represents a pretty seismic change in their relationship with HMRC. Instead of one annual tax return a year it will now be 4. This creates an extra burden in getting all of this done on time combined with the fact that VAT returns will not be submitted in the same way anymore from 2019.
At SB Accounts we believe in being prepared. These requirements from HMRC represent a change in the way many people and businesses do their accounts and, whilst this will no doubt cause a lot of frustration, if it is managed properly it could ultimately lead to the much smoother operating of your accounts function.
We have partnered with Quickbooks Online with the aim of moving all of our clients onto this system over the course of the next few years and we are happy to offer this software at REDUCED PRICES for all clients.
It is a great system that allows you to keep your accounting info literally at your fingertips and can be used across all devices.
This doesn't mean we are going to force everyone into doing all of their accounting admin but, as certified online users, we are here to guide you through as much or as little of the system as you want to be involved with. You may be surprised with the results.
...we can help you prepare for it!