It is now law that any business in the United Kingdom with an annual turnover of more than £85,000 will have to comply with Making Tax Digital system of tax filling, beginning from 1st April 2019. This is something that has caused much anxiety to businesses especially those that are used to the traditional method of bookkeeping. However, it’s not a big deal for the traders operating below the threshold.
If your business is above the threshold and therefore is required to comply with the new rules, you’d better get ready for the change. In as much as it’s new and will somewhat involve spending a good amount of money, it will help be of much more help to you rather than filling alone.
Following is what you need to do so you’re ready for the deadline
Stop your reliance on paper
Firstly, get all your business records and books; the receipts, paper notes, invoices and such ready. You needed all these for book audits before but this process is going to change completely with MTD. Any record that is used in your business and falls under what is audited must be moved to the digital system. Have the paper and the digital records in place. It will require some time spent on a daily or even weekly basis to transfer these records digitally. Getting into a routine however and matching the two is a great habit to get into and would ensure that you have better business governance. Are you looking forward to something that is going to transform your business into a more productive one and minimize leakages? The MTD is the best avenue toward that path of success. Don’t wait until the last minute; get a reliable Making Tax Digital company.
Embrace HMRC approved software
You could be having digital accountancy software already in place. However, you need to beware that many of these will become irrelevant when it comes to migrating to MTD. The government’s body HMRC must approve the software you use. That means that any other software won’t be accepted. If you have had any other software, it doesn’t mean the end of the world, you only need to get a reliable Making Tax Digital software company and you will have everything in place before the big day. Again, look for software that would accommodate all your business systems so that you don’t have to keep your records scattered in many systems. The professional should be able to guide you on such.
Get the system in place on time
There is no need for a rush; with over two months before the April 1st deadline, you can have the MTD compliant system installed and proper training carried out for the staff involved. You, therefore, need to have a schedule of how this is going to be introduced and everything should be ready a month before. This will give you time to make trials and familiarize all with the system. Last minute changes may end up costing your business unnecessarily and thus something to avoid.
Why should you wait until the last minute to go MTD compliant? Remember, there are not many professional MTD compliant companies and if you are not careful, you may be forced to hire one at a very high charge. Be wise and get ready in time.