MTD (Making Tax Digital) is coming into force for VAT registered clients on 5 April 2019, and for non VAT registered business’s 2020 at the soonest. We have been working closely with the clients that we maintain the books for to ensure that they will be fully compliant and that systems are put in place to simplify this which includes among other things: -
· Bank Feeds; where your bank statements are automatically fed into your bookkeeping software
· Auto Entry; this is where if an invoice is supplied by email or if you use an app to record it then again is entered directly into your bookkeeping software
In all our letters and articles we mention the importance of dealing with this now rather than waiting until the last moment. We advise clients that are maintaining their own books and records to ensure they use a digital format and if not already doing so to contact us as a matter of urgency so that we can move them across to an appropriate software package.
The best time to change your bookkeeping systems is at the beginning of your financial year but you should contact us in plenty of time so that the new software can be set up for you and training can be given if needed.
There has been a surprising result to a survey carried out by the AAT. They found that their members believe that only 53% of their VAT clients will be fully ready to digitally report their figures by the start of April 2019, while 33% of accountants believe that 81% or more will be ready and 14% believe that none of their clients are prepared for MTD.
If you have any questions in relation to this, please do not hesitate to contact us.