Home Articles Xero Don’t panic – we can ensure companies make a smooth transition to new Making Tax Digital rules

Don’t panic – we can ensure companies make a smooth transition to new Making Tax Digital rules

Article Published: January 21, 2019

Many companies have come back to work after the Christmas break facing a race against time to get ready for new Making Tax Digital rules.

Around 400,000 companies are still not aware that they will have to file their VAT returns online from April 2019, according to a recent report from a Parliamentarycommittee.

But there’s no need to press the panic button if you use a Xero Cloud accountancy partner such as Premier Tax Solutions.

All of our current VAT registered clients are ready for Making Tax Digital and we are geared up to help many more take action before April 2019. The best way to become Making Tax Digital compliant is to convert to online Xero accountancy software as this means that a company will get automatic filing to HMRC four times a year, as required under the new rules.

Some pressure groups have called for the changes to be delayed. Suren Thiru, Head of Economics and Business Finance at the British Chambers of Commerce, says at a time when companies are also facing Brexit uncertainties, a 12- month pause may help ease the move to digital tax returns.

But, here at Premier Tax Solutions, we believe a delay can be avoided by using accountancy software. We are a Xero Gold partner and are ready to support any businesses who have still not made the move to Cloud accounting.

We can even offer support to businesses looking to go digital, working alongside the company’s traditional account.

Our message to companies who feel left behind is that there’s still time. It takes just a few hours to get you set up on Xero and you will automatically be ready for Making Tax Digital. Using the internet instead of installed software means you can access your accounts from any device and be able to see real-time finances, wherever you are in the world. New add on services are being released regularly and we can guide you through each one as they come onto the market.

What is Making Tax Digital?

Making Tax Digital is a Government initiative that sets out a vision for the ‘end of the tax return’.

Under MTD, taxpayers will send HMRC summaries of their income and expenditure at least four times a year. HMRC says this will enable a more ongoing and accurate projection of tax due, as opposed to the current system of one tax bill at the end of the year. To do this, taxpayers will need to integrate their accounts with software in some way, meaning many companies will move away from the use of spreadsheets for the first time.

If you would like advice or help on MTD and how it will affect your business please call us on 01782 479699

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