Change and uncertainty can be daunting. As the Brexit date closes in and new HMRC procedures with the VAT making Tax digital have come into force, this is naturally an anxious time for businesses. Obtaining expert services such as an experienced accountancy firm is the easiest way to deal with financial developments, as professionals are required to keep up to date with legislation.
If you have not planned ahead and prepared for this change, it is not too late. VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the new service. The VAT periods starting from 1 April 2019 need to have a digital account of invoices and expenses uploaded to HMRC approved software.
Many businesses do not have the time and resources to learn the capabilities of new software and finding the right one for you can be time consuming.
An advantage of making tax digital is having all information in one place and easy to manage and prepare for tax.
A disadvantage is remembering to keep receipts and upload them, as well as learning the correct process of adding expenses. There is still space for human error.
However, in this digital age, we can expect all industries to move towards technology based systems which also helps businesses stay paperless.
Getting a quality accountant who is certified and keeps up to date with the latest legislation is the best way forward. JNS Accountants have experience using the new process during the trial period and before making tax digital was made compulsory. With our experience we can advise of the best practices to keep on top of your VAT going forward.
For more information contact us today on 0330 223 2711