VAT changed April 2019 Explained
It’s now less than a year until businesses that file VAT returns will need to do so online via accountancy software. Apart of the Making Tax Digital (MTD) programme, the initiative means some 2.5 million VAT registered businesses in the UK with a turnover exceeding £85,000 will need to submit their VAT returns through software compliant with that of MTD rather than through the HMRC portal.
Both businesses and their accountants are therefore being required to set up and use online software such as QuickBooks, Xero and Sage. But many companies are still unprepared for the changes. So what can you do to ensure you comply in time? Here, we offer some tips:
Educate yourself and your staff
The first thing to do is confirm – as soon as possible – that your organisation is subject to MTD. There are a few exclusions, including being subject to an insolvency procedure, or being a member of a religious society that has beliefs incompatible with using electronic communications.
If you aren’t exempt, you’ll need to sit down with your accountant to discuss how the changes will affect your business and come up with a new process for billing, preparing accounts and filing data. You can then begin to research different software options to see which would suit your company best.
Inform your staff
Allow your staff as much time as possible to get on board with the idea of digital accounting. Speak to them about what the changes involve and why moving to online accounting is necessary. You may then want to appoint a champion or group of champions – depending on the size of your business – to lead the introduction of the programme.
Introduce the software
Once you’ve found an online provider that fits with …Read More