From April 2019 onwards all businesses registered for VAT and with a turnover of £85,000 or above, must maintain their VAT accounting records and submit their VAT returns digitally. For some businesses, the changes will make little difference to how they keep records but for others, the changes will have a greater impact.
For those not yet familiar with what Making Tax Digital (MTD) will mean for their business, be assured there is still time to make certain your records are compliant. Advice is available to assist you in preparing for the changes, whether you wish to outsource your bookkeeping completely, require assistance updating your systems or training in how best to use them.
If you are already using a cloud based accounting software package, then this will likely to be compliant with the new rules. If you are using a desk top based accounting package, then this is likely to be MTD compliant but only if you are using the latest version of the software available. For those using manual written records, then significant changes to record keeping will need to be made as records must now be kept digitally.
As well as ensuring you are compliant with the new Making Tax Digital legislation, digital bookkeeping can have other benefits including allowing you to manage your financial records “on the go” and providing a more efficient and accurate accounting function for your organisation.
Cloud-based accounting systems are far more cost-effective than you may anticipate, with some digital platforms available from as little as £10 per month and in some instances even less when purchased through your accounting advisor.
Making your VAT systems digital is achievable for the deadline, but time is of the essence. However you keep your financial records, whatever the systems you use or the support you require, help is at hand.
Contact Lorna Wyllie at Wylie & Bisset LLP for advice, training or to outsource your bookkeeping completely on 0141 566 7000, email lornaw@wyliebisset.com or log on to www.wyliebisset.com and sign up for one of our free MTD Seminars.
