All businesses and those filing self-assessment returns need to join Making Tax Digital (MTD) by April 2023.
The government announced in early summer that after delays, MTD will be implemented. This means that all your tax records will need filing using HMRC compatible software.
For many, this might mean introducing a whole new system of keeping books and records. VAT-registered businesses with a taxable turnover in excess of £85,000 have been part of MTD since 2019. Over the past 18 months, 1.4 million businesses became part of the programme, submitting more than six million tax returns.
As a result, a lot of lessons are being learned so that the switch should be smooth. But if you are not ready and don’t get to grips with the software, it could become a problem.
Using accounting software
Guidon Group has embraced bookkeeping software for some time. HMRC has listed the software it accepts for MTD, although we recommend QuickBooks.
Accounting software allows you to keep records digitally, which can be accessed via your smartphone as well as tablets, laptops and desktop computers.
Bookkeeping software not only streamlines how you keep your accounting records, it also helps improve how you run your business. For more details, check out one of our earlier blogs about using accounting software.
We recommend QuickBooks to our clients because of its intuitive and simple operating system. For more details, read our blog about why we prefer QuickBooks.
Even if you have until April 2023 before needing to switch to digital accounting, we recommend you start sooner. It means that once the deadline comes into place, you won’t be struggling on the day MTD goes live for everyone.
If you fill in a self-assessment tax return with a turnover in excess of £10,000, register for MTD by April 2023.
It may seem a long way to go, but time flies and having MTD systems in place ahead of its implementation makes a lot of sense. You will have plenty of time to use QuickBooks so that you don’t face problems.
That is why Guidon Group has designed special training courses to help you. Even if you’re not a client, if you want to use QuickBooks we can help you.
While it may seem simple to get to grips with, it can be daunting trying to learn it all by yourself and you may make mistakes this way, which could be costly in future. Plus it has a lot of features that you may miss out on if you don’t fully understand how to use it.
Our training even helped one of our clients buy their dream home after we moved her to QuickBooks. Although a bit of a self-confessed technophobe, learning how to use the software and interpret the numbers helped her boost her business.
If you would like to learn more about QuickBooks through our training workshops, contact us by emailing [email protected] or telephone 01642 927265.
You can train on a one to one basis, or in a group if more than one person looks after accounts in your business.