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'making tax digital'

Posted: Tue 26 Jun, 2018 9:18 pm
by sisters
This was included in an email from my accountant

[quote][Most businesses are not aware but all VAT registered businesses with a turnover exceeding the VAT threshold will have to produce records and store invoices digitally from April 2019 (known as the Making Tax Digital (MTD) mandate)./quote]

at the moment my bookkeeping is done with Money Manager no problems with it and nothing to pay

now told must change to cloud accounting and receipt-bank = £35.00 a month plus accounts bill at year end

any thoughts any one???

Re: 'making tax digital'

Posted: Tue 26 Jun, 2018 9:33 pm
by Abacus
According to the icaew there will not be a requirement to store invoices and receipts digitally

https://www.icaew.com/technical/tax/mak ... businesses

Re: 'making tax digital'

Posted: Tue 26 Jun, 2018 10:03 pm
by sisters
thanks abacus
From April 2019 all VAT registered businesses with turnover above the VAT threshold will be required to maintain digital records and will need to send their VAT information to HMRC using third party commercial software. HMRC’s online portal will remain available to all other businesses that complete a VAT return but have turnover below the VAT threshold.
do i miss read this? if you have to use 3rd party commercial software won't that be at a cost?

Re: 'making tax digital'

Posted: Tue 26 Jun, 2018 10:13 pm
by sisters
ok so......


.[quote] [HMRC has confirmed that the requirement to keep digital records does not mean that businesses will have to make and store invoices and receipts digitally. Businesses can continue to keep documents in paper form if they prefer, although transactions will need to be stored digitally.
HMRC has stated that the following records will need to be kept digitally:/quote]

so is my accountant pushing me into something thats not needed , but just suits them ?

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 8:24 am
by Steve N
I think what it will mean is that you will have to use a account software which can submit you VAT Return online straight to HMRC, and set up a Direct Debit for payment, so no more filling in paper returns and posting then to HMRC along with a cheque

Will not effect me as I'm keeping below the threshold :sweating: :rock:

Just Googled Money Manager and it seems with the Business Edition you can submit your VAT online

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 8:47 am
by fusionframer
I have recently switched to quickbooks so as well as producing invoices etc easily, you can quickly photograph your receipts and attach to records. It will also calculate your vat return for you. I think the package i am on is £15 per month, but i was offered 50% off for first year.

It saves me a huge amount of time.

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 11:10 am
by misterdiy
So is the 50% off the £15 a month?

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 11:14 am
by misterdiy
I do submit VAT digitally - well I do it online from my Excel spreadsheet which calculates the amount of VAT required. All I do is transfer that to the HMRC website.

However, I am led to believe that this form of "digital" is not good enough and accounts will have to be submitted using "proprietary software" This, I assume, means Quick Books, Sage or suchlike.

I de-registered two months ago.

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 12:20 pm
by Steve N
I think it's not only VAT but PAYE and NI as well, that will have to be submitted online :xcomputer:

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 1:46 pm
by fusionframer
Yes, 50% off £15. There are 3 different packages. The mid range one i am on deals with payroll and vat. The offers they advertise are for 50% off for 6 months, but when i signed for a trial, they contacted me and offered for the year.

I have to say that i would not go back and when it goes up to £15, i would still think it good value. It is easy to use and as an example, when my wessex delivery comes and i get handed the invoice, i enter it and photograph a record in a minute and it is dealt with.

Once you get into that routine, your accounts are always up to date. You can also invoice and email someone from your phone in less than a minute.

Nick

Re: 'making tax digital'

Posted: Wed 27 Jun, 2018 3:56 pm
by Not your average framer
Sounds like a good system. I'm not registered for VAT, as I am under the threshold, but I do not enjoy accounts at all. Paying so little to be rid of all the bother sounds great!

Re: 'making tax digital'

Posted: Mon 01 Oct, 2018 11:44 am
by ahmed11
50 % for 15 pound is a great deal

Re: 'making tax digital'

Posted: Mon 01 Oct, 2018 2:35 pm
by JFeig
FYI pc computer-based accounting software has been around since the early 1980's. Quickbooks was started in 1983. Before that, you had to have a mainframe computer or minicomputer. That is over 40 years of accounting software or more. I have about 50 years of computerized accounting experience.

Welcome to the 20th century from the 19th century. It might be time for all businesses to let the computers to the take the drudgery out of accounting work. Less than $200US is worth the investment and accuracy vs the time of any business person. We are now in the 21st century.