Almost 1.2 million businesses have just weeks to go before the introduction of Making Tax Digital on 1st April. The new Government rules require all VAT-registered businesses with taxable turnover above the VAT threshold of £85,000 to keep records digitally and have compatible software to submit VAT returns.
But the message from Geens is keep calm and carry on as there’s more benefits than challenges from switching to digital accountancy.
At Geens, we are fully geared up for Making Tax Digital and have the ability to work with the business software of your choice to support your business.
Many people will have heard of Xero, Sage and QuickBooks, but according to Theresa Middleton, Director of the Making Tax Digital for Business Programme, there are over 160 software products for businesses to choose from with a range of prices, including some that are free, offering different levels of functionality to suit every business.
We are not in the business of promoting one software solution. We have a number of client using bespoke packages and we are familiar with all options.
Keeping up to date with tax rules can often seem overwhelming for companies and missing tax deadlines makes all businesses vulnerable to penalties.
But the upside of Making Tax Digital should mean your business should never miss a deadline again. You can choose a software package which will automatically calculate your VAT and tax liabilities and report the figures to HMRC for you.
“There has been understandable concern from business organisations about Making Tax Digital and much of this is about just how ready or aware businesses are of the need to start storing and filing their VAT data digitally,” said Karen Lowe, a Director at Geens.
“The latest research from HMRC indicates that 81% of VAT mandated businesses are aware of Making Tax Digital either by name or the concept but only 45%t are ready to sign up before 1st April.
“However, once companies have switched to digital accountancy they will undoubtedly benefit from having up to date accounting records. Smart use of accountancy software means that companies will have a clear picture of their finances available at all times.
“Making Tax Digital will end so-called shoe box accountancy where some companies rush in to see their accountants with a box full of receipt just days before their annual accounts are due.
“At Geens, we have provided demonstrations and training and will continue to do so. While the key date of 1st April is on everyone’s mind, it is also wise to look at each company’s year-end date as it is preferable to have the entire financial year on one system. Having said that data conversions from one software to another are readily available which can bring across old data from a non-compliant system. Software upgrades to include bank feeds can significantly reduce a business owners time spent on its day to day bookkeeping so there are some real advantages to the changes for some”