Accounts & Bookkeeping
From April 2019 the business world will face a major change in the form of Making Tax Digital Difficult for Businesses. Initially VAT registered businesses will need to file their VAT Returns under the new MTD mechanisms. From 2020 at the earliest existing annual Self Assessment Tax Returns will be replaced by five or in some cases six new reporting obligations made during and after the tax year. Under MTD HMRC aims to join up its internal systems and so create one account for each taxpayer, for all their different taxes within HMRC. Via their 'digital account' taxpayers will be able to view all their payments, and offset overpayments in one tax against underpayments in others.
Under MTD it will be mandatory to keep digital business records. This means the days of the carrier bag full of records, the Simplex D or other manual record keeping books will be gone. In addition, business owners and property landlords will have to file quarterly returns of income and expenditure to HMRC within 30 days of the quarter end. So for example a trader with a quarter end of 31 March will have to MTD file by 30 April. This will, of course lead to additional compliance costs with the Federation of Small Businesses estimating it could be up to treble existing costs.
Despite HMRC assurances, concerns remain about the costs involved in complying with digital filing requirements which are likely to have the greatest impact for smaller businesses, many of whom are already struggling to keep up with the PAYE Real Time Information requirements and Auto Enrolment.
We can support you and your business of this significant burden by taking care of all your bookkeeping and accounting needs. This ranges from making use of our inhouse bookkeeping bureau, supporting you with your day to day bookkeeping requirements to the preparation of your annual accounts from your records. We will treat every business individually so that we can tailor our approach to your requirements.
We believe that our high level of IT literacy can help improve our efficiency and help our clients to set-up their accounting systems to be efficient and effective. Whilst we are conversant with a number of accounting software solutions such as Quickbooks, Xero and Sage, we recommend Kashflow. Kashflow allows us to easily transfer your accounting information to our specialist accounting and tax package, thereby reducing the amount of time we need to spend on your basic records.
Require more information?
If you would like more information or would like to speak to us direct then call us on 01761 410444. Or if you would prefer, ask us a question online.