Over the last couple of years we have been hearing little bits of information provided by HMRC regarding Making tax digital. The principle remains the same with the quarterly reporting of company financial information however the timescale has been altered slightly.
Those companies & businesses with a turnover greater than the VAT threshold (£85,000) will need to report quarterly from 1st April 2019. The reports must be submitted within 1 month. (Unlike with VAT when entities have 1 month and 7 days)
Those businesses with a turnover below this and landlords with rents less than the £85,000 figure will at present start reporting quarterly from 1st April 2020 at the earliest. Please note HMRC have not confirmed the deadline they have only said that the need to file quarterly will be 1st April 2020 at the earliest. This could still be extended.
To help limit the work required we are starting to introduce clients to cloud based bookkeeping software solutions. This type of software has many time saving solutions for both clients and accountants. Quarterly reporting will inevitably increase the work required by Accountants or bookkeepers however by streamlining the process as much as we can the delivery of MTD should not be too great a burden on businesses.
Software – at Tacconi Green & Co we have become certified many of the MTD software products, we have attended training courses so we are up to date to meet clients needs and support those that wish to report in house. Our present software recommendations are Quickbooks online, Xero & Sage one. All of these are cloud based solutions and all have similar features. No one software provider will fit all our clients so do contact us to discuss your needs before making the decision. We also get partner rates with the providers which are often better than individuals will get going directly to the software companies.
If you wish to discuss this further please do give us a call on 01480 300945 and your partner will be able to talk you through the process. It may seem like this could be a large increase in admin but with the right advice and software to help we can make sure the process is a simple and painless as possible.
Updates to follow when we get them.
Richard at TG.