Browsing Archive January, 2019

How to Prepare for Making Tax Digital

Are you running a business in the UK? If you are, then you might be aware of coming changes to the taxation system. Presently, this is going to be known as Making Tax Digital, and it’s going to transform the UK taxation scene. Presently seen as too cumbersome and paper-driven, the aim to move everything to MTD is a good idea, though not without its controversy. For example, if you are not sure what MTD is, then you might be caught by it when the changes eventually come through.

If you wish to prepare for MTD, though, it would make sense to start looking at the first thing you need: good software. Whatever system you use at present, you will soon find that Making Tax Digital might not be applicable to it. Only certain software packages will be fully suitable for this change, so it’s important that you keep that in mind.

For example, if you are used to using a particular software solution then we recommend you contact them as soon as is possible. If your business is falling into the MTD for VAT threshold, too, you will need to act sooner.

What if my present software will not be MTD-suitable?

If that is the case, then you will need to look around as soon as is possible to find a new solution. Sadly, many companies will be caught unaware by the change. It would be wise for you to avoid making the same decision. If you wish to do so, then we recommend that you start spending some time looking at some of the options on the market.

For example, some accountancy software is made purely to be suitable with MTD for VAT. If you would like to find reliable and professional taxation systems, then you should look to use a service which is easy to use. A modern and preferably minimalistic design structure is preferable.

However, you also want to work with a company that can help you to understand the latest changes and features of MTD. Make sure you only use accountancy software which goes out of its way to explain the full nature of MTD so that you can better prepare for it.

If you do that, you are much more likely to come out the other side with a positive experience. Any company which is set to make the move from normal VAT taxing to MTD for VAT should look to find help as soon as is possible. As MTD for VAT is still in its relative infancy, you will find that it’s not going to so easy to determine the changes you need to make.

By working with software specifically made to handle this problem, though, you run a much better chance of succeeding here. If you are worried about upcoming changes to your taxes, then, you should absolutely look to make the right choice now. Making Tax Digital for VAT is just around the corner, so it’s essential that you prepare now.

READ MORE +