Making Tax Digital (MTD)
From the 5 April 2018 HMRC will start its roll out of Making Tax Digital.
This is one of the biggest challenges facing business over the next few years.
Initially this is aimed at sole traders, partnerships and landlords with a turnover above the VAT threshold of currently £85,000 commencing with accounting periods from 5 April 2018.
Businesses with turnover below this amount have recently received a 12 month reprieve and will only have to comply with MTD from 5 April 2019 and those with a turnover of less that £10,000 are fully exempt.
Limited Companies will need to comply with MTD from April 2020.
What will those affected have to do?
Digital Records - This will mean using MTD approved accounting software, such as sageOne, or spreadsheets accompanied by software which together meet the requirements of MTD!
Quarterly reporting - HMRC wants business to keep their records as up to date as possible, they believe this will reduce the amount of careless errors in business records.
Businesses will therefore have to report their income and expenditure on a quarterly basis and final figures will need to be reported within 10 months of the business year end.
If you want to ensure a smooth transition to MTD then call Haywoods today, we can offer two levels of SageOne digital software depending on your business needs with free training, online help videos and 24/7 assistance provided by Sage.