HMRC is sending letters about MTD (Making Tax Digital) to all businesses in the Loughborough area which are registered for VAT and have a turnover in excess of the VAT threshold of £85,000. The letter is basically saying that MTD is coming and your business needs to be ready for it.
What does it mean for you?
The first thing is that you must be keeping digital records. Paper records will no longer be acceptable.
The second thing is that, even if you are using desktop based bookkeeping or accounting software, it may not be MTD compliant. Anything which is more than a year old probably will not do the job. This applies to all of the well known bookkeeping software such as Sage or Quickbooks. So, you may need to upgrade the software you are using.
This may be the time to review the way you keep your records – but don’t leave it too long. MTD is operative from 1 April 2019 so you need to get moving if you want to be properly up and running with new software. It can easily take a couple of months to set up and become become conversant with new software.
We can help. As registered Quickbooks Online, Sage Business Cloud, Xero and KashFlow advisers, whichever you are happiest with, we can get you going quickly with minimum fuss or disruption – and help you with whatever training you need. There are differences between the various pieces of software and a full analysis of your needs might result in considerable savings.
Ask us – (01509) 816150 – or use the form below
Something which isn’t mentioned in the letter is the ability to use “bridging software” which will take information from legacy systems, such as Sage or Quickbooks desktop, convert it and connect to the HMRC system. This could take away the need to invest in new software, at least for a while.