Since 1 April 2019 all VAT-registered businesses with a turnover above £85,000 across the UK have needed to keep their financial records in a digital form and submit their VAT returns using MTD compatible software¥. This Government legislation, called Making Tax Digital (MTD), is the biggest change to tax compliance in a generation, impacting over 1.2 million small businesses in the UK – yet new research has shown that around a third (31%) still aren't compliant*.
Today, Huddersfield based accountancy firm; Sheards Accountancy remind us that it is MTD ready and here to help VAT-registered small businesses in Yorkshire through the transition quickly. By partnering with Intuit QuickBooks, makers of HMRC recognised accounting software, Sheards can make digital tax compliance easy for local VAT registered small businesses.
Kevin Winterburn, Director of Sheards Accountants said“We've seen research that small businesses in Yorkshire still don't fully understand the MTD legislation, are concerned about being compliant and are worried about time spent learning new digital processes. We're also aware that they are relying on accounting professionals to make the change. That's why we're delighted that by using QuickBooks, we're ready to help small businesses in Yorkshire make MTD easy for them.”
“MTD presents a huge opportunity for small businesses to embrace digital to grow their business. We want to work with local small businesses to encourage them to take advantage of this moment. Digital tools can help with cash flow management, getting paid faster, access to capital – all crucial factors in the success of small businesses in Yorkshire”
While moving to digital taxes may seem an initial hurdle, research shows that embracing digital can help small businesses become more productive, saving time and making money through more efficient processes. A QuickBooks study showed that by using digital tools, small businesses in Yorkshire can make productivity gains of as much as £4.8K.
Many small businesses still rely on the likes of paper and Excel to manage their finances and prepare their taxes. For these businesses, MTD can represent an even greater change to their bookkeeping.
For more information on Making Tax Digital, contact us today.
¥ All VAT registered businesses with a turnover above £85,000 need to be MTD compliant for their first VAT tax period starting on or after 1 April 2019
*Independent research conducted on behalf of Intuit QuickBooks by Opinium of 500 UK small businesses, April 2019
^The Productivity Payout, February 2019