Many small business owners are still not aware of Making Tax Digital (MTD).
From April 2019, VAT registered businesses with turnover over £85,000 will be required to keep a digital record of their VAT transactions, and submit their VAT returns using Making Tax Digital compliant software.
As the MTD deadline approaches, here is what you need to know.
• Know your dates – what is your VAT quarter end, when do you have to file your return by?
• Review your software – is it HMRC compliant?
• Review your processes – are you ready for quarterly reporting?
• Ensure you meet deadlines to avoid the penalties that will be automatically applied regardless of the situation.
• At Sterling Finance (UK) Ltd, we are encouraging all of our clients to switch to cloud accounting. As well as being MTD compliant a great advantage is that both client and accountant can log in and review the book-keeping and accounts. There are many cloud based accounting systems available to choose from these days and our preferred software is Sage accounting.
• If you’re using older desktop accounting software to run your business, you may need to make the switch to the cloud – and the time to do it is now.
• MTD ready accountants will be in high demand as the deadline draws closer, so beat the rush and make sure you’re prepared to hit the ground running in April 2019.
If you would like to talk to someone about switching to cloud accounting at Sterling Finance please telephone our offices and we will be more than happy to help.
Mrs Sharon Ashmore
Client Manager at Sterling Finance (UK) Ltd
This article is written by its author for publication. Its main purpose is to provide a broad overview of the various issues that should be considered by organisation when considering setting up business in the UK.
The information provided cannot be exhaustive and – as underlying legislation and regulation are subject to frequent changes – we recommend anyone considering doing business in the UK, or looking to the UK as an opportunity for expansion, should seek professional advice before making any business or investment decisions.