The UK tax system is changing – is your business prepared?

Making Tax Digital (MTD) is a Government initiative which aims to make the tax system more modern, more efficient, and easier for taxpayers.

The first stage, MTD for VAT, begins from 1 April 2019 and makes digital record-keeping and reporting compulsory for VAT-registered businesses with a turnover of more than £85,000.

If you’re one of those businesses, it’s important to understand the requirements of MTD and to make sure you’re ready to meet them.

Preparing for Making Tax Digital

Businesses included in MTD for VAT have two main responsibilities: keeping digital records and filing VAT returns to HMRC using compatible software.

As well as complying with these requirements, it’s important to choose software that suits your business, and to make sure your staff are ready to use it.

Even if you’re not among the first included, MTD is expected to roll out to all other businesses over time, with the next stage taking place as early as April 2020.

We recommend Xero as a flexible, user-friendly option for small business owners to manage their accounts and get ready for MTD, and we’re happy to assist with implementing it.

How we help

As specialists in accounting and business software, Heather & Co can offer any guidance and support your business needs to meet the requirements of MTD.

We can:

• Offer discounted rates on Xero software, along with training and ongoing support.
• Provide a bookkeeping service that’s compliant with MTD.
• Assist with VAT registration and offer advice on planning and administration.
• Prepare your VAT returns and submit them according to HMRC’s requirements.
• Get in touch for help with MTD, or find out more about our bookkeeping and VAT services.