Our MTD workshop will explain what is required of your business by April 2019 and beyond, and what you need to put in place now so you are MTD ready. The format of the workshop will be as follows:
MTD – An overview of the key points to include:
- Timelines – MTD will be introduced in stages – what will this mean for you?
- From April 2019, businesses with a turnover above the VAT threshold will have to keep digital records for VAT purposes.
- From as early as 2020, businesses may be asked to keep digital records and update HMRC quarterly for other taxes.
- The simplification of tax reporting – Why is HMRC really doing this and what information are they looking for?
- The Digital tax account and the flow of information to HMRC – including banking data.
Often the advantages are overlooked:
- More efficient cash flow planning
- Less paper work at the end of tax year (Electronic data will go directly to HMRC – but will need to be checked and verified before the submission)
- Quarterly tax filing could actually relieve your workload. (rather than cramming twelve months of work at the end of financial year)
- Understanding your tax liability as it arises so that you can plan
As with all changes, particularly when it comes to technology, there will be challenges, however CBW knows what these will be and can help prepare you and your business, and depending on how hands on you want to be, can take a lot of this work away from you. Such challenges include:
- Compulsory use of technology
- More reporting deadlines
- The need to keep records up to date
- Loss of privacy – information may be passed onto HMRC by banks & government organisations.
Finally we will talk you through some of the other advantages of cloud accounting beyond MTD requirements and how our cloud accounting team work with our clients to help them achieve these benefits.
Online accounting software is not compulsory (yet!) but to comply with MTD, cloud based accounting software may well make it easier for you to run your business and help you make better decisions in relation to having online and up to date financial information.