Making Tax Digital Cloud Accounting

ARE YOU READY FOR MAKING TAX DIGITAL?

FOR HELP ADVICE & PRICING

Email: makingtaxdigital@brosnans.co.uk

Brighouse 01484 722125

High Bentham 015242 63000

Keighley 01535 600811

We are ready to keep you fully compliant with the latest Government initiative for Making Tax Digital. We have partnered with the software suppliers below and have tried and tested their products. You can either do your own research or speak to one of our Making Tax Digital team members who will be happy to advise on the product best for you. Some are better than others, and we have no doubt that other players will enter the market and we will continue to test their products and make recommendations accordingly. If you need advice, please call us or email makingtaxdigital@brosnans.co.uk


What is Making Tax Digital (MTD)?

A government initiative, set to commence April 2018 and phased in on the following dates using the following criteria:

Businesses, self-employed people and landlords will be required to start using the new digital service from:

  • April 2018 if you have profits chargeable to income tax and pay class 4 national insurance contributions (NICs) and your turnover is in excess of the VAT threshold
  • April 2019 if you have profits chargeable to income tax and pay class 4 NICs and your turnover is below the VAT threshold
  • April 2019 if you are registered for and pay VAT
  • April 2020 if you pay corporation tax (all limited companies)

HMRC need quarterly submissions, and submissions need to be made through new software. Failure to make submissions on time will attract penalties, these have not been defined yet. HMRCs aim is to have real time income details and over time the annual Self Assessment Tax Return will be phased out completely. The desire for quarterly accounting and submissions should avoid any errors creeping through by using approved software.

I have a business to run, I don't have time for this:

Don't worry, it doesn't have to increase your workload, we can do it on your behalf but you will need to buy a software licence which we can arrange, and then we will process your books and records through the system. The impact on you will be minimal, the only thing to remember is to make certain we have your books and records as soon after your quarter end as possible in order that we meet any deadlines and avoid penalties.

I already use Sage for my book keeping, do I have to change?

Sage will be contacting all their users and offering an upgrade (at a cost) that will enable Sage to be compatible with the new HMRC digital service. Dependant on how old your current Sage software is you may wish to consider an alternative cloud accounting supplier. If you already use another accounting software package the story will be the same. Time to upgrade or switch. Just make sure you make your decision in good time ahead of the deadline.

Are there any benefits to me and my business?

You need to be compliant and within the law, but there are other brilliant benefits to be had from some of the software suppliers, including:

  • Access to your data via your smart phone, tablet, computer
  • Customised invoices
  • Ability to covert a quote to an invoice and a purchase order to a purchase
  • Automatic debt collection (which you can customise, set dates exceeded, exclude certain customers etc)
  • Track Debtors
  • Track Sales
  • Track Expenses
  • Manage VAT
  • Estimate Self Employed Tax
  • Receive bank feeds
  • Pay bills using paypal/world pay
  • Track deductible mileage
  • Run Payroll
  • Manage CIS deductions
  • Understand your real time cash position
  • Connect to your accountant

You can do it all, and we can be in the background to check all ledger postings are correct and general advice on allowances and tax, or we can do just the bits you don't want to. Rest assured we will work with you to ensure you are fully compliant and your submissions are on time. We will also assist with training if needed.

What do I need to do?

Refer again to the schedule for when you need to have something in place. We are recommending that anyone due to submit from April to subscribe to one of the cloud packages by September in the previous year to allow for 2 quarters to embed the new process and iron out any teething issues. For example: businesses due to go live in April 2018, ideally need to be up and running on compatible software by September 2017.

FOR HELP ADVICE & PRICING

Email: makingtaxdigital@brosnans.co.uk

Brighouse 01484 722125

High Bentham 015242 63000

Keighley 01535 600811