From April 2019, VAT registered businesses with a turnover above £85k will be required to keep a digital accounting record with the HM Revenue & Customs (HMRC) Making Tax Digital (MTD) service.
The government initiative aims to make it easier for businesses to manage their taxes through digital record keeping, using accounting software such as Sage X3.
The current system is reportedly costing the government over £9 billion a year in avoidable mistakes. MTD is designed to make the UK tax system a simpler and error-free process.
With the improved accuracy of digital records, businesses will be able to stay well-organised and running efficiently, with a clear and accurate audit trail.
For more information, see the HMRC’s Making Tax Digital Timeline.
Making Tax Digital with Sage
If you currently submit your VAT manually through the post or via the existing Government Gateway, and your turnover is above £85,000, you will need to implement or update your current accounting software to an MTD ready version before April 2019.
Sage offers a range of accounting options that all ensure you are fully compliant with the new MTD regulations. Submitting your VAT returns will become a much easier and efficient process with the ability to manage your accounts on the go.
Making Tax Digital: Top Tips From Peter Jones
Sage Ambition Ambassador, Peter Jones, has spoken out with his advice on keeping your business well-organised and why embracing digital change is vital for your company.
Take a look at our handy Making Tax Digital Checklist that will help you to understand if your business will be impacted by MTD and how to ensure you are ready for the April 2019 deadline.
If you’d like to know more about MTD compliance and how Percipient can help to prepare you for the April 2019 deadline, get in touch or call us on 01606 871332.