We may have panicked, but we planned and prepped so when April 2019 came and we saw the Government’s flagship Making Tax Digital (MTD) regime fall into place, we were ready to help more and more businesses with cloud accounting by creating a real-time accounting solution.
Since the introduction of MTD, businesses have been encouraged to be on top of their bookkeeping to ensure they abide by the MTD for VAT rules.
So, we have compiled 5 top tips on how you can ensure your business is ahead of the MTD game:
Start Filing Early
Simple yet effective, it’s best to start filing early and submit your VAT returns to avoid any last-minute hassles. No-one wants to be hit with HMRC penalties due to missed tax filing deadlines!
For your business to have real-time books, you’ll have to schedule tasks and gathering the information required from different sources. Therefore, by implementing a digitised filing process will improve the efficiency of any business.
Hire an Expert
Does the hassle of keeping your books up-to-date and meeting filing deadlines fill you with dread?
Have you considered hiring a professional?
Although some may avoid hiring an expert due to the potential costs or not having the requirement for a full-time accountant, many businesses are now outsourcing their bookkeeping. This is becoming a more frequent option for companies as it can be a cost-effective, flexible solution and gives business owners the confidence that they have a knowledgeable tax professional looking after their books for a more accurate and seamless filing process.
Technology has become an invaluable part of the accounting and taxation process. Therefore, it is important we highlight the multiple benefits Cloud Accounting has for businesses:
- Remote access to the information, anytime, anywhere you may need it.
- Streamlined efficiency
- All your data is automatically backed up
- Peace of mind
- No expensive hardware to install
- Compliance to future legislation changes
- All business information is securely in one place
With constant changes being made in tax laws and regulations, it’s a necessity for businesses to keep up to date and remain compliant.
Originally, other forms of taxation, such as Income Tax and Corporation Tax, were meant to follow on from requirements for VAT in April 2020 at the earliest. However, following the 2019 Spring Statement, the Government included an amendment in a Written Ministerial Statement, which confirmed that MTD for other forms of tax would be delayed until at least April 2021.
However, in relation to Corporation Tax and MTD, it is yet to be revealed by the government but there is an expectation that it will be introduced alongside or shortly after Income Tax reporting for MTD in 2021.
Wilder Coe offers business owners professional, honest and independent advice when choosing a cloud accounting package. For guidance on finding the best solution to accomplish your bookkeeping requirements, then please contact us today.