Making Tax Digital
Making Tax Digital is a government plan coming into force from April 2019. The aim is for individuals and businesses to submit quarterly returns instead of the annual tax return, in operation now.
Information such as bank interest and income from employment will be given directly from the bank and employers to HM Revenue and Customs, so this will not have to be included when submitting your return.
The aim is that taxpayers will be able to access their HMRC account, and know how much tax they will be due to pay, at any point in the tax year, rather than just once a year. For businesses where income varies throughout the year this may not be very accurate.
If your business is VAT registered then you will already have to submit VAT returns quarterly, so this new system won’t affect you too much.
However, if you’re used to giving your accounting records to your accountant once a year then things will have to change. You will have to be more organised, so that every 3 months, or more regularly, you will have to let your accountant have your records.
New software will have to be purchased for most accountants, which may mean that many clients will be able to submit information to them on a digital basis.
Obviously this new system means more work for you throughout the year, but it also means more work for your accountant, which inevitably means an increase in fees.
Here at Mark Stanley Accountants we are committed to you receiving the best possible service for a reasonable fee. Over the next year we will be looking at new software, which is easy to use, and cost effective. If you can’t or don’t want to use new technology, then this can be accommodated.