With the Government’s flagship Making Tax Digital (MTD) regime now in place, more and more businesses are looking at cloud accounting to help them get to grips with managing their tax and financial information online.
Since the introduction of MTD, businesses now need to ensure that all of their relevant tax and financial information has been migrated online via an MTD-friendly software package, which will enable them to communicate directly with HMRC when it comes to submitting tax information.
If your business is VAT-registered, you are now required to use this software to send quarterly digital reports to the Revenue for VAT purposes (since April 2019).
Originally, other forms of taxation, such as Income Tax and Corporation Tax, were meant to follow on from the requirements for VAT April 2020 at the earliest. However, following the 2019 Spring Statement, the Government included an amendment which confirmed that MTD for other forms of tax would be delayed until April 2021 at the earliest.
In relation to Corporation Tax not much has been revealed yet by the Government, but it is expected to be introduced alongside or shortly after Income Tax reporting for MTD in 2021.
The multiple benefits of cloud accounting:
- Remote access to the information you need
- Streamlined efficiency
- Automatically backed up data
- Peace of mind
- Nothing to install
- Future compliance
- All your information in one place
- Real-time information
How can Knights Lowe help?
Transitioning to new software can seem daunting, but our cloud accounting team are here to help.
Whether you have an established family business or a start-up looking to scale up, we can provide a hands-on approach, ensuring your cloud-based system runs like clockwork and you and your staff are completely confident with how everything works. At Knights Lowe, we use Xero and Receipt Bank as our main tools.
For help and advice with cloud accounting, contact our expert team at Knights Lowe today.