HMRC has received 3,000 responses to its eight month consultation on Making Tax Digital.
Here at Ellis & Co, we have been busy informing our clients about digital tax and the end of the tax return as we know it.
From 2018 interaction with HMRC will become increasingly digital, with businesses using Cloud accountancy software packages (apps) set to record business activity.
After listening to the ‘concerns of businesses and agents’ HMRC has confirmed the following points:
- Businesses will now be able to continue to use spreadsheets to record receipts and expenditure, which they can then link to software to automatically generate and send their updates to HMRC.
- Free software will be available to the majority of the smallest businesses.
- Businesses that cannot go digital will not be required to do so.
- All self-employed businesses and landlords with a turnover under £10,000 a year will not have to keep their records digitally or make quarterly updates, but can do so if they wish.
- The option to account for income and expenditure on a simple ‘cash in, cash out’ basis will be extende.
- Charities will not have to keep their records digitally or make quarterly updates
- Customers will have at least 12 months to become familiar with the changes before any late submission penalties will be applied.
- HMRC will pilot these digital systems with hundreds of thousands of businesses before rolling them out to ensure the software is user friendly, and to give businesses and landlords time to prepare and adapt
HMRC issued ‘Making Tax Digital’ in 2015, announcing these big changes for 2018 and eventually becoming fully digital by 2020.
You now have a two year time frame to move from the desktop to a cloud package, so don’t delay.
We can offer you, depending on your requirements, a FREE accountancy software package.
For further information, or to sign up today, email email@example.com or call 01244 343504.
To help make the process smoother we will be holding an event entitled ‘Are you Digital Tax Ready’ on Thursday, February 23rd at Rowton Hall, Chester, from 8am – 10am.
Join our very own John Moorhouse, NatWest’s Digital Expert Ben Brown, and SAGE’s Paul Crosby, as they explain the ‘ins’ and ‘outs’ of digital tax.
Breakfast sandwiches, pastries and tea/coffee will be available on arrival.
Tickets are free, but you will need to register here.