Blog
Amelia CoutissonXero accountancy specialist & bookkeeper
Giving you back your time to do the fun things in life.
HMRC’s Making Tax Digital (MTD) initiative came into force on 1 April 2019, initially affecting businesses with a turnover above the current VAT threshold of £85,000. Under the new rules, which herald just the start of a major shake-up within HMRC, businesses must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD ‘functional compatible software’. The government had planned to require businesses to keep digital records and update HMRC quarterly for income tax from 2018, but these proposals have been deferred. However, regulations have been issued which set out requirements for MTD for VAT. Therefore, the new rules apply to the first VAT quarter commencing on or after 1 April 2019. Due to this change in strategy, many business owners may be confused or unsure as to exactly how this affects them, or, of the deadlines they need to adhere to – the first being in June 2019 for most businesses - and for this reason, it's imperative that businesses get their procedures and strategies in order now in order to avoid late payment penalties from HMRC and al the stress that goes along with it! Under the new MTD rules, businesses have to use a software program which can connect to HMRC systems via an Application Programming Interface (API) capable of keeping records in digital form as specified by the new rules; preserving digital records in digital form; creating a VAT return from the digital records held in compatible software and submitting this data to HMRC digitally; providing HMRC with VAT data on a voluntary basis, and finally, receiving, via the API platform, information from HMRC to ascertain compliance. Of course, all this can sound confusing and worrying when you're a business owner who just wants to get on with the task in hand and focus on your business, and that's where my skills come in - I'm here to take care of all this for you leaving you free to get on with the more fun things in life!
1. I save you time Unless you already know a lot about bookkeeping, it's unwise to take on this work yourself. Processing receipts, expenses and payments is only part of my work. I know how to assign expenses to particular clients, I take all the numbers, enter them into the Xero software, and make sense of them. I know how transactions should be treated and can create business reports for you.. It's a skilled job, and with years of experience, I am able to complete daily and weekly tasks with a high level of efficiency. 2. I understand your business Because I deal with the day-to-day accounts, I have a deep insight into your company's finances. By sharing my professional and experienced insight with you, I can help you work out where your business should be going. and I can flag any issues in time for you to do something about them. A good bookkeeper watches over your finances and helps you steer clear of trouble. 3. I help manage your cash flow Accountants provide a valuable service, particularly when it comes to strategic advice, annual returns, and tax issues. But they don’t usually see your accounts every day. However, as your Xero specialist and bookkeeper I will keep a close eye on your accounts on a regular basis. This will help keep your cash flow under control, which as you will be aware, is vital for business growth.
