Making Tax Digital
InTouch Conveyancing Software is ready for Making Tax Digital, are you?
Making Tax Digital is HMRC’s compulsory initiative aimed at making filing tax simpler for businesses.
The scheme requires online tax filing and payment, as well as digital record keeping. All business taxes will be part of the scheme, but so far, only Making Tax Digital for VAT has a roll out date.
Since the deadline is drawing closer, throwing up lots of confusion and questions we have compiled a list of frequently asked questions, to ensure you know how you can be compliant with InTouch Conveyancing Software & Xero.
What is making tax digital?
Making Tax Digital is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.
The initiative means UK businesses will need to store digital records and submit updates to HMRC using recognised accounting software.
What is changing?
It is important to note that the rules around VAT are not changing, it is only the submission of VAT records which is changing.
Who does it affect?
VAT registered businesses with a taxable turnover above £85,000.
If it doesn’t affect me, should I still take action?
Absolutely, take this opportunity to enjoy the simplicity and efficiency of online accounting.
HMRC is encouraging all businesses to sign up so you can also benefit from Making Tax Digital.
When does Making Tax Digital begin?
The Making Tax Digital pilot for VAT started in April 2018, which means some of you may already be submitting VAT digitally. For everyone else it is mandatory from 1st April 2019. You must start following Making Tax Digital rules from the first day of your first VAT period that starts on or after 1st April 2019 How can I ensure I am using the correct system to submit my VAT?
Within the GOV.UK website, the HMRC have provided a list of software which is ready to be used to submit your VAT digitally.
Is InTouch Conveyancing Software Making Tax Digital compliant?
Yes. With our real time sync with Xero accounting software you can be assured that you have the most user friendly approach to your disbursements, client accounting & VAT submissions.
How is InTouch Conveyancing Software Making Tax Digital compliant?
The HMRC state that once data has been entered into software used to keep and maintain digital records, any further transfer, recapture or modification of that data must be done using digital links.
InTouch Conveyancing Software is already prepared for this- every Office & Client transaction is digitally linked to your Xero transaction.
What else do I need to be aware of?
The date and details are still to be confirmed by HMRC, however maintaining digital records and quarterly submission of income and corporation tax are expected in April 2020.
This will allow through your digital account, a complete picture of your business’s tax affairs, the collection and processing of information will be as close to real time as possible, helping prevent tax due and repayment build ups and no longer having to wait until the end of the tax year to know how much tax you have to pay.
What do I need to do now?
If you are already a user of InTouch Conveyancing Software, contact [email protected] and we can run through the various options available to you.
If you are not already a user of InTouch Conveyancing Software, contact [email protected] and we will happily give you a demo to show how you can easily become a user of InTouch Conveyancing Software and enjoy the InTouch Conveyancing Software/Xero integration which ensures you are Making Tax Digital compliant.
This article was submitted to be published by InTouch Conveyancing Software as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.