Making Tax Digital (MTD) is the Government’s new initiative to move all business and personal tax affairs online. The first phase of this comes into play shortly for all businesses with a turnover above the VAT threshold of £85,000. For all VAT periods starting on or after 1st April 2019, businesses must now keep digital records and file their VAT Returns using compatible software, such as Xero.
Other aspects of Making Tax Digital have now been placed on hold until at least April 2020. For further information on MTD in general, check out our blog post here.
If you’re a VAT Registered business above the £85k threshold and you’re not already using online compatible accounting software, like Xero, you’ll need to make this switch as soon as possible and before 1st April 2019. With the exception of a very small minority, all of our clients now use Xero and this is included within our package to small businesses. We’ve been using Xero for many years now, for the extra benefits that small businesses can gain from using Cloud Accounting.
If you need help or assistance with moving to Xero, please get in touch. We hold Xero Training sessions every month, which are free for clients to attend and £20 for anyone else. If you’re interested in coming along, book a ticket through our website here.