The first part of the current HMRC proposal for making tax digital comes into effect April 2019, but businesses should be preparing for the changes now.
The full details of the requirements can be seen here, however the two main changes apply to VAT registered businesses over the VAT threshold are:
– Records must be held digitally
– VAT returns must be submitted via compliant software.
Therefore businesses already using software that will be compliant by April 2019 will not be affected by the changes.
Businesses who still prepare the records manually, via spreadsheet or use software but file via the government gateway will need to review heir systems and ensure they are compliant.
Whilst some businesses will view this as simply an annoying requirement to remain compliant whilst adding an additional cost of a software expense, it is my view that it is a good opportunity for clients to review their systems to improve efficiencies in processing and reporting.
Current versions of accounting software offer powerful reporting and the ability to automate processes. Providing software is used correctly it will provide savings in costs or will add value above that of the subscription cost.
Topping partnership have experience dealing with multiple pieces of software to maximise their usage for clients’ businesses so please contact us to see how we can help and advise on the right piece of software for you.
Remember, the key to success is looking at problems and seeing the opportunities!