Under the revised timetable, by April 2019 businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes. These businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2021.
This means that businesses and landlords with a turnover below the VAT threshold will not have to move to the new digital system until at least 2021, although there are significant advantages to switching to online accounting (see below).
This change in the way HMRC wants information from tax payers in the future means that you may need to move from your existing desktop or manual record keeping and onto an online accounting package. It is a significant change for many of us and means the end of the annual tax return to be replaced with a digital tax account where all your information will be stored in one place.
The good news is we are certified in the installation and operation of Online Accounting software which is digitally compliant and specifically designed for small and medium sized businesses.
What are the advantages of going digital?
Digital accounting software has significant advantages over the traditional ways of bookkeeping.
Imagine if you could:
See a clear picture of your current financial position, in real-time;
Have your accounts 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available;
Avoid upfront accounting software costs – upgrades, maintenance, system administration costs and server failures are no longer an issue;
Have your bank feed your data directly into your accounts on a DAILY basis;
Take a photo on your phone of a purchase invoice and it was posted automatically; AND
See your results, who owes you money, who you owe to and your business bank balance 24/7, 365 from your phone.
Some of our clients have already gone digital and they are delighted with the results, here are just a few of the comments we’ve heard:
“Amazing, I can’t believe what a difference this has made to my business!”
“We never have to do back-ups of our system again!”
“We love the fact we can post invoices, check the bank and see who owes us money using the App on our phone!”
How do we make the change?
As quickly as possible! All we need is a commitment to change and we will take you through a step by step process which means you will be up and running in no time AND we will:
- Extract your existing data and upload this to your new digital accounting software;
- Link your accounts to your bank account;
- Enable Apps to your phone or tablet to let you work “on the go”; and
- Demonstrate the system and show you how to get the most from your accounts.
Chartered accountants and tax advisors McPhersons is offering training sessions on compliant digital tax software, including assisting with the transfer of all data.
Get in touch by calling 01424 730000 or emailing firstname.lastname@example.org