With Making Tax Digital (or MTD) coming into effect from 1st April 2019 you need to make sure you are ready, and we’re going to help you, right now!
This is a mandatory change by HMRC, meaning that all businesses over the current turnover threshold of £85K must register for VAT, and will have to keep digital records as well as submitting tax returns online through compliant software.
We are here to help
This is where Jugo comes in. Not only do we integrate our solutions into market-leading accounts software which is compliant with MTD, but we also have our own accounts solutions – Back Office Accounts. This is ideal for businesses who don’t have a solution in place or those who would like to consider an alternative to their current accounts software.
What exactly is Making Tax Digital?
First things first: Making Tax Digital (MTD) is an initiative by HMRC, meaning that all VAT registered businesses with a taxable turnover above the VAT threshold of £85,000 per year are required to keep record digitally, and use compliant software to submit their VAT returns online from 1st April 2019.
Why are these changes happening?
HMRC is striving to become one of the most digitally-advanced tax administrators in the world. Their key goals for their systems:
- Make tax more effective
- Make tax more efficient
- Make it easier for the taxpayer to pay the right amount of tax
In essence, these goals make sure that HMRC receives taxes owed quickly, and it gives less places for business to hide.
When is everything happening?
Well, we might have mentioned that the big date is 1st April 2019; from here you must be compliant. Beyond this date, there’s a risk of penalties for each late submission of MTD reports.
Anything else we need to know about Making Tax Digital?
Yes! Keeping digital records and submitting VAT returns online is just the start. HMRC have already outlined plans that require businesses to also submit their Corporation and Income taxes online. Although the plan is not 100% finalised, it will be coming into effect from April 2020 (at the earliest).
But what if you already have accounts software - such as Sage - in place?
You will find that the major software providers will already be compliant with the MTD changes, albeit you may have to upgrade to the latest version to ensure compliance.
Keeping things digital
As records must also be kept digitally with the changes, our integrated EPOS and stock control solutions can link directly to your existing accounts software. So, there’s no need to duplicate data or perform double entry! Our system automatically posts the data into the accounts software, making the whole submission of VAT returns online process that much easier!
So where does Jugo come in?
Jugo has its own accounts software which will be ready and compliant for the changes coming into effect. Back Office Accounts is a complete finance system which manages your customers, suppliers and general ledgers. Plus, it takes care of those all-important VAT returns which can be submitted directly to HMRC through the software.
So, there you have it; Jugo’s simple system to make sure you stay compliant come 1st April. Find out how quick and straightforward MTD can be; get in touch and speak to one of our experts today.
Ready to talk?
Call us on 02382 002134
or send us some details and we will be in touch