Making Tax Digital Update

Genesis Business Systems Blog

Making Tax Digital – Where are we?

We are receiving several visits per day to our site from companies looking at Making Tax Digital, so I thought it was about time to post an update.

Whilst technically nothing has changed, we are now well passed the April 1st 2019 start point, and yet according to the Making Tax Digital Monitoring Business Awareness of MTD report, published in February 2019, 20% of businesses have not planned on when they will sign up and a further 11% do not know what Making Tax Digital is.

So, what is the problem? Simply too many people are not reading the facts, and assume it is an optional method of submitting tax returns, or business are concerned at the cost to their operations, with no additional benefit.

To make it clear if your business is VAT registered, with a taxable income above the £85,000 VAT threshold then you required to submit your quarterly VAT returns electronically. From April 2020 your income tax and/or corporation tax will be required to be submitted digitally.

What does your business need to do?

  1. Register for MTD on HMRC’s website
  2. Make sure your current Accounts software is compliant. If it isn’t, Genesis Business Systems have several options to best fit your business needs and budget. 33% of businesses have reported that they are concerned about the financial cost of implementing MTD compliant software, but for many it can be a simple upgrade. For those that require a new software solution, cloud hosted solutions provide a low monthly payment, with lower Total Cost of Ownership – especially as there is no longer the need to maintain or upgrade Server Systems. Cloud hosted solutions can also be scaled up or down to suit business requirements.
  3. Deploy your chosen software solution, make sure the users are fully trained, and get those returns submitted.

You’ll soon find, not only is the digital system quicker and easier to use, but you’ll find the latest Accounts Software Solutions, ERP and MRP packages save time on data entry, bookkeeping and reporting. They also provide time critical information and comprehensive reporting, since the data required to make decisions and compile reports is not store across the company in various spreadsheets and databases. If implemented correctly MTD can help your business plan and grow, to make sure you get things right, speak to GenesisIT today on 01482 210999 or contacts us at [email protected]