PARTNERSHIPS, SOLE TRADERS AND ANYONE WITH A RENTAL PROPERTY: THIS WILL AFFECT YOU (as early as April 2018 for some).
The government's 'Making Tax Digital' project means that, within the next couple of years, you will be required to report financial information to HMRC - quarterly AND digitally.
Most businesses, the self-employed and landlords will need to use software or apps to keep business records and to comply with the quarterly reporting requirements. The days of manual record keeping will be over!
HOW SHOULD YOU PREPARE?
Our advice is as follows:
Allow plenty of time - to plan, review and get used to new systems.
Choose a cloud based accounting package. We can help you choose one that is right for you. Our team specialise in the product leaders: Xero, Sage and Quickbooks.
Get information up to date – and set a date by which you want to retrieve, at the minimum, a profit and loss report and a balance sheet report from the system.
Consider aligning VAT with year end - to keep the number of quarterly submissions to HMRC to a minimum.
Let us help. You're not alone - we can offer support and guidance every step of the way.
SO, WHAT'S THE GOOD NEWS?
Cloud accounting software has many benefits, so the change needn't have a negative impact. Benefits of being on the cloud include:
Get a clear view of your finances - any time, any place.
You will never need to do backups of your accounting software again.
Run your business from work, home or on your mobile.
It automatically grabs bank receipts and payments in real time.
Use your mobile to photograph purchase invoices and expenses and upload these to the software.
Automatically generate and submit VAT returns and other reports with one click!
In the near future we will be contacting all affected clients to discuss the new HMRC rules and to offer demonstrations of how easy a cloud based system is. In the meantime, if you have any questions about 'Making Tax Digital', please contact a member of our team.