Is Your Business Ready for Making Tax Digital by the HMRC?
Making Tax Digital is an initiative by the HMRC envisioned to digitalize the UK Tax System, but is your business ready for Making Tax Digital? Are you and your business ready to adopt the reforms brought by the HMRC department? If not sure, then please read this blog.
According to the HMRC department, they have asked businesses to get ready for MTD, and as a result which, they have circulated a list of over 200 software products for businesses to choose from with a range of prices, including some are free, offering different levels of functionality to suit every business. But, if you are not sure whether your business is ready for MTD or not, then here’s what you need to do.
What do Businesses need to do?
If you are a business having an in-house accountant or a tax representative, then he / she will be aware about Making Tax Digital (MTD) and will advise you on how and when your business needs to make changes to be ready for the new services.
If you are already using one of the MTD compatible software suggested by the HMRC department, then register for the new service and authorise your software for MTD. However, if you are one of the businesses that are not using any software, then it is quick and easy to register; and there is lots of information available to make your business ready for MTD.
If you are confused whether your business fall under the VAT threshold defined by the HMRC department, then take necessary steps to confirm it first. This is because, if you are falling under the defined VAT threshold, then you need to start keeping your records digitally and sending your VAT return to HMRC direct from your software for the next VAT periods. If you don’t know how to do it, then it is recommended to contact an accounting firm like “Affinity Associates” to help you make your returns Making Tax Digital compliant.
If you don’t have an in-house accountant or a tax representative, need to select software to use and sign-up to MTD, then authorise their new software for MTD. The official website (GOV.UK) offers a lot of information on varieties of MTD compatible software – from free software to more straightforward tax affairs.
Contact Affinity Associates for MTD
If your business falls under the defined VAT threshold, and if you don’t know from where to start then, help is here. Affinity Associates is a London based accounting firm known for providing the best accounting and bookkeeping services to small businesses in London and across the UK. Affinity Associates is one of the leading names in adopting the MTD and other tax reforms put forward by the HMRC department, UK.
To know more about MTD and how affinity associates can help you, schedule a free consultation. Contact us at firstname.lastname@example.org or dial 44-020-8903-2077.