Making Tax Digital – are you ready?
As part of our strategic direction to offer a cloud-based accounting solution to our clients, ahead of the MTD deadline, Garbutt + Elliott have been partners with Xero, the global market leader in online accounting software for over five years. We are Platinum Partners, a status that has been achieved due to the high volume of clients that we have already helped transition from traditional to cloud-based accounting.
In simplistic terms, cloud-based accounting allows businesses to be paid faster via means such as mobile invoicing, automatic reminders and online payments. It also provides the opportunity to automate bank transaction imports, reconciliation, payments and much more. Of course, with digital accounting anyone can quite literally run their business from the palm of their hand with the easy-to-use Xero app. Being able to access real time information in an easy to use format will keep business owners better connected to their finances and will allow for a better informed and speedier decision-making process.
With live data held securely in the cloud, not only can our clients access their accounts from anywhere at any time, but so can we. We embrace using the latest technology, providing our clients with the very best service available to them. Xero has always stood out against the rest, as providing a user friendly, intuitive cloud-based accountancy platform and we are thrilled to part of the movement towards making tax digital.
MTD, due to start for most mandated organisations on April 1 2019, has been deferred, for six months for a number of businesses. A total of 3.5% of mandated businesses now have until October 1, 2019, to make sure that they are compliant. The 6-month deferral applies to customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users.
But with the deferral only being relevant to 3.5% of mandated businesses, the majority still need to meet the ever-looming April deadline, which is now less than three months away. From that date, VAT-registered businesses with turnover greater than £85k will have to keep digital records and submit VAT returns using compatible software.
With the deadline fast looming for most, it is imperative that small businesses do not get left behind. Current statistics, from the House of Lords Economic Affairs Committee suggest that up to 40% of businesses required to make the change, do not even know about it and as such are unlikely to be using suitable accounting technology to move them into the digital age.
Garbutt + Elliott are well placed to help any small business, throughout the UK, make a smooth transition into MTD and we welcome anyone to contact us for advice. Please call us on 01904 464100 or email us at email@example.com.