2019 is the beginning of the end of the tax return as we
know it.
From April 2019 VAT
registered businesses turning over more than £85,000 pa will be required to
submit their first quarterly return using software and keep their records
digitally. This leaves very little time to make changes to your accounting
processes.
Surprisingly not everyone is digital ready.
Make it your new year’s resolution to get your financial
affairs in order. With the right digital software you can resolve to fulfil
your financial promise to HMRC and keep your business on track all year round.
How will quarterly tax returns work in practice?
Instead of filling in your quarterly
totals using HMRC’s online portal your software must talk to HMRC systems and
upload your quarterly records to HMRC automatically. The accuracy of your
submission still depends on you inputting all information correctly.
The advantage gained by updating quarterly
is you effectively manage cash flow throughout the year and accurately calculate
your next VAT bill.
Will quarterly tax returns affect SMEs and self-employed?
Quarterly VAT reporting is phase one. Over time HMRC will roll out Making
Tax Digital to all taxes (currently scheduled for April 2020). Companies, certain landlords and self-employed will be required to
submit tax returns quarterly.
Here are 7 reasons to go digital now:
- Smoother transition, less stressful
- Automation saves time
- Increase accuracy, no mistakes
- Manage cash flow all year round
- Know tax bill in advance
- Avoid HMRC penalties
- More time reduces fees
To find out how Murrison & Wilson is Making Tax Digital simple for businesses click on the link to our last blog
Or call 0141 290 0262 or email info@muwca.co.uk today.
