We are fast approaching the compulsory deadlines for Making tax digital. You will be required to keep digital accounting records following your VAT quarter that ends between March to May 2019.
Those who are VAT registered with a taxable turnover of more than £85,000 will need to be prepared to avoid serve penalties and fines for noncompliance. If you do not meet both tests you do not need to consider making tax digital at the moment.
Please see below steps that need to be taken
- Select a suitable accounting software that is making tax digital compliant, some of the most popular software’s are Xero, quickbooks and free agent. You can still use an excel spreadsheet to prepare your VAT calculations providing you have a bridging software, absolute accounting do provide this which links your spreadsheet to HMRC’s software.
- You need to register with HMRC before you submit your first VAT return under making tax digital rules. This must be done through the HMRC website.
If you are unable to comply with the new rules because you live in an area with no internet connection or you are part of a generation that does not understand technology, you can apply for exemption.
If you would like more help ensuring you comply with the new rules please contact me, alternatively we offer a bookkeeping service that will take care of all your tax obligations.