Since HMRC started to push for real time accounting, known as "making tax digital",cloud based software has fast grown in popularity. Cloud accounting not only gives you faster access to your numbers but can save you time and money too.
Making Tax Digital (MTD) & Online Accounting
We are pleased to report that we have appointed Ryan Whitby as our MTD and accounting package expert. Ryan has worked for Mapus-Smith & Lemmon for 19 years. Ryan has extensive knowledge in computerised accounting packages and is experienced in helping businesses of all sizes, install, maintain, automate and operate computerised accounting systems.
“Ryan said that over the last 10 years I have seen massive advances in accounting package technology and with the introduction of cloud based packages businesses have been able to take advantage of these improvements and not only comply with HMRC requirements but improve their profits and businesses processes.” He continued to say that whilst online accounting packages are not a specific requirement, desktop accounting systems with direct links to HMRC systems are an appropriate alternative, although some form of computerised accounting package will be required by all businesses within the next 2-3 years.
Further information: -
In July 2017 HM Revenue & Customs announced that businesses and taxpayers would be required to report their income, VAT and profits quarterly online.
The original implementation date was with effect from April 2019, although this was subsequently delayed.
The new implementation dates are:
For VAT registered businesses above the VAT threshold (currently £85,000)– with effect from April 2019 – Online VAT reporting
For other all businesses below the VAT threshold– with effect from April 2020 – Online profit and income and VAT reporting
For individuals with annual unearned income (i.e. property letting) exceeding £10,000 with effect from April 2020 – Online profit and income quarterly reporting
Online Reporting Requirements
HM Revenue & Customs require online reporting to be made using computerised accounting software directly to their online systems. Manual records will not be supported and the HMRC system requires submission directly from accounts systems which directly support Making Tax Digital.
HM Revenue & Customs have stated that, for one year only, records maintained upon spreadsheets will be acceptable, providing that an appropriate linking software package is used, however, after 1 year a fully packaged accounts system will be required. Although this is yet to be confirmed and we await for the software to be released by HMRC and further announcements.
How we can help you
We are experts in a variety of accounting packages and we can help you:
We recommend that early adoption of computerised accounting records will ensure that a smooth changeover to meet the new requirements is met, so speak to us now to discuss your requirements, whether, this is helping to implement a new accounts package, change an existing package, or even for a top up refresher training session. Alternatively, if you operate a manual system and wish to discuss us providing MTD compliant bookkeeping services get in touch now.
Benefits of Computerised Accounts Packages
Other than being compliant with the law and HMRC requirements, advances in the past 5 years in accounting packages and finance technology has massively increased.
Gone are the days of writing up complex ledgers and sitting for hours adding these up manually. For accountants this has enabled us to help businesses achieve their goals and to monitor profits in real time, rather than waiting for a history lesson 9 months after the end of each financial year.
It gives businesses valuable live financial information and data upon profitability and potential tax liabilities as well as providing indicators for business owners to improve profits, cash flow, and enables them to take appropriate action at an early stage.
In summary we believe that accounts packages are essential in the modern day business environment and whilst achieving HMRC compliance are an essential tool to running a successful business.
For further information, or any questions, in respect of MTD requirements and/or accounting packages please contact Ryan directly : firstname.lastname@example.org or telephone 01945 427050
The latest news and expert advice from Mapus-Smith & Lemmon chartered accountants
Updated Your new App free from Mapus-Smith & Lemmon LLPRead more
Mapus Centenary Charity Challenge 2018Read more
23 London Road, Downham Market,
Norfolk PE38 9BJ
Monday to Friday 8.45am to 5pm