Back in August 2022 we shared a blog on the impending next phase of Making Tax Digital. We did this to help organisations and companies get ahead on this big change that was coming, which will change how we submit tax returns forever. We are now in 2022 and the countdown is on, we are primed to enter the next phase on April 1st. In this blog, Kieran Phelan, our Founder and CEO covers what you need to know ahead of then…
IS THIS APPLICABLE TO ME?
For most companies reading this, their first question (and rightly so) will be, does this affect me?
In summary if you meet the following criteria, you will need to act ahead of April 1st:
- VAT registered businesses
- Below the £85k threshold
- Not operating under the current MTD legislation
WHAT YOU NEED TO DO?
If this does impact you, there are a number of key actions you will need to do:
- Sign-up to MTD
- Keep digital records
- Submit VAT return information to HMRC via MTD compatible software
If you are a business impacted and unsure how to navigate the above steps, we at Cloud 360 Accounting can help!
HOW WE CAN HELP!
As Northern Ireland’s first Xero-certified advisors we truly understand how to marry digital with your financial management. We’ve been supporting businesses over the past 12 years with just that, Xero is integrated into everything that we do.
Here is a list of things we can do for you to help:
- We’ll ensure your records are on an MTD compliant software – i.e. Xero!
- We’ll transition and migrate your existing information from its current format
- We’ll ensure you are fully compliant
Finally, we will start the ball rolling NOW to prepare you and your business for quarterly reporting for income tax which is due to kick in for self employed from April 2024! This really is an example of what for some might be a short-term pain but will deliver a real long-term gain. We’ve spoken about the benefits of Xero at length, but this is a real life, living, breathing example of the benefits of transiting to digital in action, and taking advantage of the benefits before government legislation makes it compulsory anyway.
This process will save you time, streamline your processes, improve accuracy whilst providing real-time information at your finger tips to keep a track of your business and goals.
Don’t leave it too late to act, there is still time – book a discovery call with us today to get started.