IMPORTANT – NEW TAX CHANGES THAT WILL AFFECT YOUR BUSINESS :
“MAKING TAX DIGITAL”.
From April 2019 the government is changing the UK tax system.
HMRC wishes to digitalis everything and is called “Making Tax Digital”.
The following changes are being implemented from 1st April 2019 for all vat registered business only:
- Sole Traders, Partnerships and Limited Companies will have to prepare all bookkeeping and vat returns using digital third party software. Manual records or cash books are not allowed any longer after this date and HMRC is stating that approved HMRC software must be used.
Excel spreadsheets are also being “phased out”.
- HMRC is stipulating that all bookkeeping and vat filing must be prepared and filed using designated HMRC approved third party software so there will be a cost in using this software.
- We are recommending to our clients to use the market leader – Quickbooks. The estimated cost for this software at the time of this letter is £15.00 -£20.00/month. We are a Quickbooks Certified and a Quickbooks Pro-Advisor qualified. This software supplier is the only one that offers telephone support and after research the best for our clients.
- There are approximately 5 or 6 different HMRC approved software providers at this date. You can purchase the software direct or through ourselves with discount.
- We will need to prepare your bookkeeping monthly and not quarterly. This will mean that everything will be in “real time “. You can access your bookkeeping instantly on your mobile or other app devices and this should give you instant access to your accounts. We simply need the sales figures/invoices inputting from yourselves.
- HMRC is currently running “pilot Programmes” with random small businesses throughout the UK and has not finalised how the accounts are to be filed. HMRC has stated they will be giving us further updates.
- Compliance: Hmrc has stated it is significantly increasing its compliance investigations. Therefore, HMRC proposes to investigate and enquire into more businesses and use the additional resources from Making Tax Digital for this. We believe that it is in our clients’ best interest if Salford Chartered Accountants prepared all monthly bookkeeping on Quickbooks and all vat returns. In this way you will feel totally confident on any compliance visit, enquiry or investigation that the information is correct and the vat has been prepared correctly.
Summary of Making Tax Digital.
- All bookkeeping and vat returns from 1st April 2019 will have to be processed on approved third party HMRC software.
- We recommend the market leader Quickbooks. We are Quickbooks Pro Advisor Qualified Accountants.
- We are happy to offer Quickbooks bookkeeping for all our clients.
- We can download the bank statements in an automatic feed from your bank and all cash receipts can be either posted to us each month or you can photograph them and they will be instantly transferred to the Quickbooks.
Please feel free to contact us at any time to discuss the above. Thank you for your valued business.
Martin J Craighan – Director.