HMRC today (14th September 2017) revealed that when their “Making Tax Digital” (MTD) rules kick in, they will not allow VAT registered businesses to use spreadsheets, they will have to use software compatible with MTD.
HMRC argue that it should not be a problem since 98% of businesses already submit their VAT online, however they seem to have overlooked a huge number of businesses that, although they are submitting the return online, they are calculating in spreadsheets, then entering the data into the HRMC portal, they are not submitting directly from software.
What this means if you are VAT registered business and you are currently using spreadsheets, is that you will have to move to an online bookkeeping package (which is MTD compliant) to stay within the new rules.
We can help with getting you set up in Xero, and with running Xero for you if you decide that you need to go down that route.
Wondering what “Making Tax Digital” is all about?
It is a piece of legislation which is expected to come in, in April 2019 which will require most small businesses and self-employed people to submit data about their revenue, expenses, and profit to HMRC quarterly.
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I am Annette Ferguson, CEO of Annette & Co. Chartered Accountant, Profit First Professional and creator of the Business Wealth Engine. We’re also SUPER social so don’t forget to follow. Here’s to your success!