Making Tax Digital

Please see MTD what we know now. post for amended dates provided by HMRC

Last year HMRC announced a consultation that will revolutionise the way in which individuals and businesses will report financial information. Making tax digital sounds simple. It will in fact be a huge change, the fact that we are still in the consulting period shows how tricky it is proving to be. The full roll out of this is expected to be completed by 2020.

The basic idea is that any individual/company with a turnover greater than £10,000 will be required to report on a quarterly basis via accounting software. This has now been relaxed slightly to include excel but must be converted by your adviser (accountant or bookkeeper) to the relevant software.

Here at Tacconi Green & Co we are currently gaining full certification on the relevant software that we will be using and advising our clients to use. We feel getting started now will help our clients make a smooth transition to MTD. We don’t of course know the full extent of the change as it remains in its consulting stages, you will of course be kept up to date via this blog, our website or most commonly with a letter through the post.

The software that we have selected for this will be Xero, Quickbooks Online & Sage one. We will of course continue with other software that our clients may already use. You may have noticed that all of these are cloud based solutions. “The cloud” is certainly the future. It allows us real time access to your data and likewise you will have instant access once we have amended, updated or finalised your figures. This is extremely helpful when it comes to cash flows and management figures. (We will have a more detailed software post shortly).

For now we must start preparing. Starting to think about the processes that can help your business transfer as seamlessly as possible. We will keep you updated with each HMRC announcement.

If you have any questions please don’t hesitate to contact us on 01480 300945.

Richard at TG