- Allison Houghton
Bored of Brexit? How about Making Tax Digital?
Making Tax Digital will change the way your business pays its taxes to HMRC. The first of these changes will come into play in April 2019. This blog sets out what Making Tax Digital will mean for you and your business.
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
more effective
more efficient
easier for taxpayers to get their tax right
VAT-registered businesses with a taxable turnover above the VAT threshold ( above £85,000) are required to use the Making Tax Digital service to keep records digitally and use software to submit your VAT returns from 1 April 2019. You will no longer be able to do this via HMRC’s Government Gateway.
If you are VAT registered then you will need to move to digital record keeping (i.e. use software to record all your VAT invoices and receipts). If you are not VAT registered then digital record keeping is optional. However, these business owners can gain updated income tax estimates whenever they want, which will help with cash flow forecasting.
If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for Making Tax Digital. The new implementation date is 1 April 2019.
We’re here to support you with Making Tax Digital
At Business-ology, we are committed to helping small businesses adapt their technology to ensure the transition to the new digital tax system is a smooth one. We will support you every step of the way and continue to work closely with HMRC to help clarify exactly what Making Tax Digital means for you and your business.
We can help you review your options to ensure they will be ready with Making Tax Digital during this busy time.
By continuing to use an older Sage product, this could mean that from April 2019 you will be unable to submit VAT returns through the HMRC Gateway or via Sage and you will need to find a solution to ensure that you are compliant.
Sage already offers compliant software through its Sage Business Cloud, including the latest version of Sage 50 – Sage 50cloud v25, and Sage Business Cloud Accounting.
Sage 50cloud (previously Sage 50): Cloud connected software that is a simple upgrade from Sage 50 with the same look and feel to help you carry on working the way you are, and with all the latest features and improvements, plus Microsoft Office 365 connectivity.
Sage Business Cloud Accounting: Simple yet powerful cloud accounting that’s perfect for small businesses and all you need to manage finances and cash flow. Your existing Sage data can also be easily migrated.
If you would to discuss your options further, you can contact us via email on info@business-ology.co.uk.
Alternatively, you could contact Chris Pattison at Sage directly on 0191 294 3000 EXT 69175 or email chris.pattison@sage.com
Please quote Business-ology to receive exclusive access to discounted software.