HMRC's plan to modernise the tax system will begin this April.
VAT registered businesses with a turnover above £85,000 will be the first group to adhere to the changes.
Businesses will have to maintain their accounting records in digital form, and file their VAT returns via accounting software.
Making Tax Digital (MTD) is a £1.3bn investment programme that will mark a fundamental change in the way that businesses interact with HMRC.
Spreadsheets will no longer be the norm and software will instead link directly to your business bank account, so transactions are automatically captured and included within your accounts on a daily basis.
No more receipts clogging up your desk drawers; you can now take a photograph of your petrol receipt and upload it directly to your accounting app, meaning your records are updated in seconds.
No more preparing sales invoices to be sent in the post; instead, you can create and send them directly to your clients from your phone, and your sales figures will be updated instantly within the software.
And you will never have to worry about back-ups of your accounting software again!
See your accounting figures 24/7, 365 days a year all from your Smart Phone.
HMRC issued ‘Making Tax Digital’ in 2015, announcing these big changes for April 2019 and eventually becoming fully digital by 2020; meaning that businesses have a time frame to move from the desktop to a cloud package.
To help make the process smoother Ellis & Co, NatWest and accountancy software provider FreeAgent will be holding an event entitled ‘Making Tax Digital– have you made the switch?’ on Wednesday, March 20 at the DoubleTree by Hilton Hotel & Spa Chester.
Join our very own John Moorhouse, NatWest’s Nathan Johnson, and FreeAgent expert Danielle Walker as they explain the ‘ins’ and ‘outs’ of digital tax.
In her demonstration Danielle will show you how FreeAgent software can help your business to:
- Create estimates that can be converted into invoices
- Keep on top of expenses anywhere and at any time
- Automatically import bank transactions to help build real-time accounts
- Project how much tax is owed and when it's due
- File VAT and Self-Assessment directly to HMRC
- Run monthly payroll and file RTI
- Keep track of cash flow and project profitability
- Know how your business is performing and plan accordingly
- See who owes you money
Registration for this event will begin at 8am for an 8.30am start with a 10.30am finish.
Complimentary tea/coffee and pastries will be available on arrival.
Tickets are free, but you will need to register here.