April 4th, 2017

Making Tax Digital – Things You Can Do Now

 

Move your accounts onto the cloud

We’re big fans of Xero at JF & Co and a cloud based bookkeeping system is perfect for keeping great records. And with everything on the cloud it means we can easily make sure everything is correct before HMRC get their hands on your data.

Check what your desktop software will do

If you’re still using Sage or other desktop software then we’ve no doubt they’ll have a solution for you to meet your MTD obligations. But, if you’re using an ancient copy that you got from Dodgy Dave then you may find you need to upgrade.

Know when MTD will affect you

MTD is being phased in over a few years depending on the type of business you’re running. There may be delays along the way but be in no doubt – HMRC and the Government are totally committed to this. You can read our guide as to when you’ll be affected here.

Move your VAT quarter

Quarterly MTD returns will depend on when your year end is. That means that your VAT returns and your MTD returns may not be the same. Unless you really want to submit 8 quarterly returns then make sure your VAT returns and MTD returns will cover the same quarter.

Move your year end

The first round of MTD starts for VAT registered sole traders whose year end finishes after 5 April 2018.  A year end of 31 March will mean you miss it for another year.

Be realistic

If meeting deadlines isn’t your strong point then get help. We’ll can make sure our clients get everything in on time.

And be realistic about what you want to pay an accountant. MTD will mean 5 returns so expect to pay any accountant considerably more in the future if you want to drop off bags of receipts.

We’re happy to work with our clients to make sure that you can utilise the best technology to make things as efficient as possible. But to avoid paying through the nose you may need to implement some changes in how you keep your information.

Open a business bank account

If you’ve been avoiding having a business bank account then MTD could make you think again. Keeping good books – especially online – is loads easier if you have all your business transactions running through just one account. And it means you won’t be sending HMRC lots of personal information they don’t need to see.

 

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Freelancers Limited Companies Making tax digital

by
Director

John manages a wide portfolio of owner managed businesses and oversees the smooth operation of the firm’s payroll department.

After obtaining his degree in mathematics from the University of Liverpool, John joined Jonathan Ford & Co in 2004 and qualified as a chartered accountant four years later. John likes to keep abreast of developments in tax and accounting and is responsible for the mentoring of junior staff.

Outside of work, John enjoys keeping fit and is a Liverpool FC season ticket holder.

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