Making Tax Digital – What is it?
Every individual and small business will be required to have access to their own secure digital tax account. This online account will enable its users to interact with HMRC digitally.
What it means for your business?
For incorporated businesses, the first changes are not planned until 2020. But sole traders will relatively soon observe that their admin related activities start to fill in much more of their time. From July 2018, they are expected to be using the new digital reporting system.
Many organisations with existing computer based bookkeeping systems will benefit from this new change and the transition should be seamless. Unfortunately there exist many other companies whom still operate on a manual based process are advised to begin consideration for migrating to a computer based system in preparation for this new legal requirement.
The new tax declaring system will impose new reporting process in which companies will be required to complete four separate quarterly tax returns yearly.
Reporting requirements include income tax, and ‘pay as you go’ voluntary tax repayment option to provide greater insight of your taxable obligations to tax authorities.
From the perspective of a sole trader this means better planning will be required. Keeping on top of the paperwork and ahead of the deadlines will prove to be crucial in efficient business management.
The chance of receiving a late filing penalty will most likely be higher after Making Tax Digital goes live. What the government is considering, is to develop a ‘loyalty scheme’ method, where late filing points – once enough collected – will trigger the issuing of the penalty.
How can Hot Desk Solutions help?
We provide outsourced bookkeeping services structured to take the burden of laborious day to day accounting, and allowing you to focus on your core business. We will further ensure that you are prepared in advance for the new Tax Digital scheme introduced by HMRC.
By letting bookkeeping experts like ourselves deal with the work, you can be sure that your records are comprehensive and accurate.We offer a number of flexible outsourced bookkeeping services to suit your business requirements – and your bank account.
Our outsourced bookkeeping service is customised to each individual clients needs. You’ll always know in advance how much work we’ll be doing and the cost of it. We are here to ensure that your accounts are kept in immaculate order and to prepare them for your year end.
How does it work? It couldn’t be simpler.
Firstly, we’ll meet to discuss your requirements. Then you just send us your documents by post, fax or email, and we’ll handle the rest.All your information is entered into our accounting system by our friendly, experienced bookkeepers. We currently use Sage, but can use a package to suit you.
Those records can then be used for use in financial reports and statements, like budgeting and business plans.
As well as taking care of your day to day bookkeeping work, we’re also on hand to offer advice on how to improve your processes and interpret the reports we provide.
Our bookkeeping service is customised to your requirements. So in addition our service can include:
- Sales invoices: Preparing and issuing sales invoices to ensure they’re accurate and are sent out on time.
- Credit control: Chasing customers to ensure your invoices are paid in a timely fashion.
- Payment handling: Arranging regular weekly or monthly payments.
- Cashflow: Calculating the future availability of funds on a weekly or monthly basis.
- VAT returns: Ensuring your return is accurate and paid on time.
- Management reports: Helping you make key decisions about your company.
Get in touch with Hot Desk Solutions Bookkeeping now to see how we can help you.
Further reading:
http://smallbusiness.co.uk/smes-not-ready-tax-digitalisation-2536975/
