Making Tax Digital Deadline moved for some
MTDfb, due to start for most mandated organisations on April 1 2019, has now 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 six 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.
Research released in September, from ICAEW, reveals that over 40% of businesses that will be affected by MTD are not even aware that they are mandated to go digital and 13% of all businesses who need to be ready for MTD still rely solely on paper records.
Meanwhile research from Intuit has found that 30% of accountants admit to not knowing anything about MTDfb.
In simplistic terms, cloud accounting allows businesses to be paid faster via means such as mobile invoicing, automatic reminders and online payments. It provides the opportunity to automate bank transaction imports, reconcile payments and much more. Furthermore, anyone can quite literally run their business from the palm of their hand with easy-to-use apps. Being able to access real time information in an easy to use format makes business owners better connected to their finances and will allows a more informed and speedier decision-making process.
Jackie Senior, Director at Garbutt + Elliott points out, “We embrace using the latest technology, providing our clients with the very best service available to them. Our Platinum Partnership with Xero as well as our partnership with Receipt Bank, position us perfectly to support businesses with the transition from traditional accounting to cloud-based efficiency.”