As you know the HMRC initiative for Making Tax Digital is underway and we at Adcock Accounting are keeping up to date with any news we can share with you.
We wrote a blog that explained more about this regime this can be viewed here – Tax Digital for Business.
There are two critical deadlines that businesses need to be aware of:
The main reason that HMRC decided to move towards digital tax returns is to reduce the errors that occur when people make submissions. Cutting and pasting figures into the HMRC portal will no longer be allowed after the two deadlines above.
HMRC is working with software companies to ensure that their systems will be compatible with there’s so that data is transmitted electronically.
If you used cloud-based accounting software such as Xero, Sage or QuickBooks, you will be notified by them once they are ready to link with the HMRC portal. Using this system is the easiest in the long run as you have direct bank feeds and all information collated is real-time. If you want to move over to cloud-based accounting software in preparation for Making Tax Digital contact us and we can give you advice on which one is best for you.
If you still use spreadsheets to collate all your financial data, then you may need to consider spreadsheet bridging software. This type of application will be able to extract the contents of a spreadsheet and uploaded them directly to HMRC.
However, with the significant change coming into place now be the time to think about how you manage your finances now and in the future so you may find that it is time to move on from using spreadsheets if your business is growing.
We will continue to keep you up to date as we hear more, but if in the meantime you need any advice on Making Tax Digital or other tax matters, please do contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
More blog posts