More than five months have now passed since the introduction of HMRC’s Making Tax Digital for VAT (MTD), and now is the time to take the next step and consider the gains that can be made from the new system of record keeping.
Under MTD, those above the VAT threshold send HMRC summaries of their income and expenditure quarterly with those below not required to do so until 2020.
As more organisations get to grips with the overhaul of tax administration, Alex Clare, small business manager at LBW Chartered Accountants, said an opportunity had now presented itself to companies to benefit from the changes.
He said: “With almost half a year’s experience under their belts, businesses should adopt an accounting system to develop and make the process even simpler. Simplifying it can save valuable time and resources, which you can invest in other areas of your company to, for example, facilitate growth.
“One such system available is Xero, a cloud-based accounting software platform for small and medium-sized businesses that allows them to access reports and monitoring anywhere.
“LBW Chartered Accountants is a certified Xero adviser and with our gold partner status, can offer assistance and support for any organisations wishing to transition.
“Our team go through regular training and that gives our clients confidence that we can advise the best course of action.”
Xero offers users the platform to work in the same set of books regardless of location or operating system.
Spreadsheets can still be used to keep digital records – however businesses will still need bridging software to submit VAT returns digitally.
For more information and advice on how to take the next steps with Making Tax Digital, contact LBW Chartered Accountants.
LBW Chartered Accountants was established in 2009 and has gone on to become a leading firm of accountants in the north west and north Wales.
It comprises of a 20-strong team of qualified professionals with expertise in all areas of accountancy including payroll and auto-enrolment, bookkeeping, and taxation advice surrounding limited companies, trading business and property.Last modified on