Making Tax Digital (MTD)is the biggest change to the UK tax system in recent history, with the ambition to make HMRC one of the most digitally advanced tax administrations in the world.
Since MTD was first announced, businesses and accountants across the country have been preparing to ensure they are ready to fulfil MTD obligations when the time comes.
In this blog post, we explain in more detail the procedures we have put in place at FCF to ensure that we are prepared for MTD and can fulfil accounting services for businesses following the change.
Is Your Accountant Prepared for MTD?
Given the complexity and scale of MTD, some senior accountants and bookkeepers have made the decision to retire – leaving businesses to find a new dedicated accountant.
Furthermore, many businesses have become frustrated with the lack of communication from their practice, leaving them faced with the choice of finding a new accountant or not being fully prepared for MTD. – A recent survey of 1,500 small businesses revealed that 27% of them are currently looking for a new accountant or bookkeeper.
MTD for VAT
The next significant change in the MTD timeline is Making Tax Digital for VAT. From April 2019, businesses with a taxable income of £85,000 or higher will be required to keep VAT records digitally using MTD approved software.
To ensure you are prepared for this, check in with your accountant and confirm with them that the software they are using is compatible with the MTD for VAT system and on HMRC’s VAT compatible software list.
How FCF Are Prepared for MTD
At FCF, we have implemented a range of processes and procedures to ensure that we can continue to serve our clients when they begin reporting digitally. The measures we have put in place include:
Software – When digital reporting becomes obligatory, businesses and accountants will need to ensure that their accounting software is compatible with the new MTD system. At FCF, the software we use is compatible with the new MTD system and has been approved by HMRC.
Staff Training – Since MTD was first announced, we have undergone comprehensive staff training to ensure that all of the FCF team know the ins and outs of MTD and how it will impact their clients. As well as being able to answer any queries you may have, you’re safe in the knowledge that all relevant members of staff at FCF are trained in the use of MTD compatible software.
Up to Date Industry Knowledge – In addition to carrying out staff training, we’ve been keeping up to date with any developments regarding MTD as they happen. This is through professional networks, MTD pilot schemes, Government consultations, regular meetings with software managers and official guidance from the industry bodies we belong to. As a result of this, any advice we give to our clients is in line with the most recent guidance.
MTD Accountants Bristol
At FCF, we believe that every business should have access to an accountant that has the knowledge, expertise and infrastructure to help them prepare for MTD. If you’re looking for an accountant to help fulfil new MTD obligations or are frustrated with your current accountant – we can help.
Give one of our friendly team a call today on 0117 379 0810 for a free, no-obligation discussion about how we can help ensure your business is prepared for MTD.
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This post was written by Steph Roffey