04 Feb How Prepared Is Your Business For Making Tax Digital?
We have supported a number of projects recently that suggests there are still a number of businesses that are unprepared for Making Tax Digital. However, HMRC’s new regulation around digital taxation comes into force in 2 months!
Are your software, systems and people ready for the change?
Have you implemented MTD compatible software with the appropriate API to file your returns?
Soft Landing Period
Those affected might be aware of a ‘soft landing’ period for MTD between April 2019 and April 2020, where businesses which should be compliant will not be fined even if they don’t file records correctly.
Less commonly known is the fact that, even if your businesses fail with the record keeping, they absolutely must have an API. This links the business’ accounting software with HMRC from the start of the compliance period.
What happens next?
If businesses fail to adopt a new digital filing solution they will be blocked from filing returns. If returns are missed, it triggers investigations and likely fines. It is that serious and binary!
With only 2 months to go before the rules come into force, there appears to be a worrying number of VAT-registered businesses that are still not ready for the change. MTD for VAT will affect the two groups most who have been filing manually: mid and large-sized companies and micro-businesses. Mid and large typically have complex or Group VAT returns; and the many micro-businesses often rely on Microsoft Excel or manual records.
What can MA Executive do to help?
We can provide you with a professional interim resource that can be deployed to lead or support the implementation of MTD. Furthermore, SME businesses that have implemented MTD in good time have taken the opportunity to enhance their accounting software and/or look at further opportunities to digitalise their business. MA Executive interims can support you on this journey and undertake the Planning, Design, Development, Testing, and Deployment of appropriate software/digital solutions.
In the event you are lacking the resources to become MTD ready, please call David Hurwood on 0121 651 1244.