Making Tax Digital (MTD) comes into effect on 1 April and now is the time to start planning to ensure your business will be compliant.
MTD will apply to UK VAT registered businesses with a turnover above £85,000. Businesses will need to keep digital records and submit VAT returns to HM Revenue & Customs (HMRC) using MTD compatible software.
“Digital” means that records need to be kept in a format which can be directly linked to HMRC when submitting VAT returns. Handwritten records are NOT classified as digital, and spreadsheets are only acceptable when also using a “bridging” software. If you currently bookkeep on these methods alone, you will either need to transfer to one of the software platforms recommended by HMRC or use bridging software which enables data to be sent from spreadsheets to HMRC. Cloud accounting is a good solution, is HMRC approved and there are other significant benefits to your business including real time reporting, automated processes and uploading purchases and invoices from your mobile phone.
At Ellacotts, we have teamed up with bridging software companies to enable our clients to be MTD compliant whilst still using spreadsheets. We are also certified in the installation and operation of cloud accounting software. Our specialist cloud accounting team can help you find the right solution for your business and get you up and running ready to be MTD compliant.
If you would like to find out more, please speak to Derek Boughton on dboughton@ellacotts.co.uk or call 01295 250401. We are here to help you to be ready for MTD.
