Making Tax Digital is HMRC’s attempt to get you to store all your receipts electronically. Currently you have to file a tax return once a year, but once MTD is implemented, small businesses will be forced to keep electronic records of their accounts using a software which has been approved by HMRC. Businesses will have to file their tax information digitally and on a quarterly basis.
With a personal digital account, individuals will be able to send the information directly to HMRC and check details throughout the year to make sure they are correct. In theory, this should be easier as the mad scramble for receipts come tax time will be a thing of the past.
By April, 2019 above VAT threshold (£85,000) businesses will need to keep their records digitally for VAT purposes.
It is likely that smaller businesses will be required to keep digital records shortly after. HMRC is changing the way it wants information from the tax payer. As a result, you may need to move from your existing desktop or manual record keeping and onto a digital accounting package.
The good news is that Bidwell Accountancy is certified in the installation and operation of Xero accounting software which is digitally compliant and specifically designed for small and medium sized businesses.
We have teamed up with Xero (cloud accountancy software) to provide our clients with the best possible, fully compliant accounts package.
If you use our recommended packages:
At Bidwell Accountancy, we don’t believe in set packages and paying for what you don’t need. We tailor our packages to best suit your needs and what we think will be helpful to you.