HMRC put back the introduction of making tax digital by a year, but by April 2019 businesses with a turnover in excess of the VAT threshold [currently £85,000 pa] will need to provide their quarterly VAT information in digital form.
This means that it will no longer be possible to submit the summarised information at the quarter-end. Instead, the digital data will be exchanged with HMRC, including all of the individual transactions.
The implications are that all the affected businesses will need to move to an electronic accountancy solution, and will need to enter the information [or have someone else] into the package.
We have a range of solutions with some software options starting at £1 per month. We can also process the information on the client’s behalf in full, if necessary.
The upshot is that all clients preparing their VAT returns either manually, using spreadsheets or on older accounting software will have to make a decision about how they proceed from April 2019.
There is some good news though – the latest accountancy software does make life a lot easier if the features are fully embraced.
- The accounting records can be accessed on tablets or smartphones – meaning business owners can keep track of their finances.
- Invoices can be generated and emailed to customers using smartphones and tablets.
- Up to date, financial performance data is available.
- Expenditure can be captured and invoices stored on smartphones.
- Some software allows mileage to be automatically recorded.
- Your accountant in real-time can access the information, and they can help you make corrections.
Most businesses will need to take some action before April 2019