24 Jul Making Tax Digital for Vat #Lancashire #pleaseshare
Making Tax Digital. You may have heard of this?
If you have not and you are a vat registered business then you need to find out about this as soon as possible. Contact us on firstname.lastname@example.org
As from April 2019 all vat registered businesses will need to be able to submit their vat returns direct to HMRC using an approved piece of software. You will no longer be able to submit your return via the HMRC online login as you may currently do.
We at Egan Roberts are speaking to all our clients at the moment to make them aware of the above and checking what plans they have in place to be able to comply with the new rules from next April. Those clients that have a PC based piece of software (sage accounts etc) will need to make sure that their software is up to date and will be compatible with submissions to HMRC from next April. We can do this check for you.
There are however many businesses that either keep their software on spreadsheets or still keep their records manually. These businesses need to act now to be ready for the change in April 2019.
What options are there?
There are several options:
- Upgrade your current PC based software so that it is compatible with the new HMRC submission criteria
- Obtain a piece of software that links your spreadsheet to the HMRC online portal
- Move to a cloud computing piece of software (Xero, Quickbooks or Sage Business Cloud Accounting)
What we recommend
We are recommending that our clients move to the cloud, there are numerous advantages to this, not least being that we as your accountant can login to your live data anywhere and deal with any queries you have.
How easy is it to set up?
The set up of Xero as an example is very easy.
- We can send you a trial invite which lasts for 30 days if you are happy with the software you can use the standard chart of accounts set up which can easily be amended to suit your business.
- You enter your opening balances – preferably from your last year end accounts.
- You can then set up bank feeds which allows your bank to send through the transactions direct into the software. This makes reconciling your bank very easy.
- You can add your logo so that if you generate sales invoices your logo appears on them and these can easily be emailed to your customers.
- You add your purchase invoices in to the system so that the payments can be matched against these.
We can of course help with all of the above
How do I do my Vat Return
Once all the transactions have been entered for the quarter you can generate your vat return from within the software and check all the transactions to make sure it is correct. You can then publish the vat return and submit it from within the software using your HMRC login details. Again if you would like us to do this we are able to login to do this for you.
What do I do now?
Do something now do not delay any further!
Get in touch and we will give you the best options for your business and guide you so that you will be able to submit your vat returns correctly from April next year.