Registering for VAT can feel scary for businesses, but it is an essential part of growth. In this brief introduction to the tax, we give you all the most important information to help you grow more comfortable with the tax.
The biggest transformation to the tax system this century, Making Tax Digital (MTD) for VAT came into force for more than a million businesses in April.
Under the changes, VAT-registered businesses with a turnover that exceeds £85,000 need to keep digital tax records and submit their VAT returns to HMRC using compatible software like FreeAgent or Xero.
HMRC has urged businesses that will be affected by Making Tax Digital to submit their first quarterly return using approved software by 7 August.
Under the new rules, which came into effect on 1 April, businesses with an annual turnover over £85,000 need to sign up to Making Tax Digital and submit a quarterly VAT return before the 7 August filing date.
The Chancellor Philip Hammond has confirmed that he will push ahead with Making Tax Digital for VAT reforms in April, despite warnings that many firms are not ready for the change.
In the Chancellor’s written ministerial statement, he said that Making Tax Digital “is an important first step in this modernisation of the tax system to which the government remains committed.”
Is your business still using spreadsheets to manage its bookkeeping and accounts? It could be slowing you down and hurting your company.
Whether it is invoicing, checking figures or speaking to your accountant, spreadsheets more manual effort. Cloud-based accounting software automates many of these processes, making you more efficient
Making Tax Digital is a government scheme to digitise business taxation in the UK. It is being rolled out in phases, starting with businesses that pay VAT.
Businesses with a revenue above the VAT threshold must now file VAT returns digitally. And the only way to do this is by using compatible accounting software.
Cloud accounting software provider Xero has announced plans for its first office in the North of England, with a Manchester site set to open in November.
The New Zealand company, which already has offices in Milton Keynes and London, says that it will create up to 40 jobs in Manchester by early 2020.
Xero has experienced rapid growth in the UK. The online accounting company saw its UK subscribers increase almost 50% to more than 463,000 in the year to 31 March 2019.
Making Tax Digital (MTD) for VAT is here and it means a number of important changes to the way that businesses file and report their VAT.
If you run a VAT-registered business with a taxable turnover above the VAT threshold of £85,000, you are required to keep digital VAT records using MTD-compatible software like FreeAgent or Xero.
The new rules took effect from April 2019. To make life easier for busy business owners, FreeAgent has introduced a range of updates and improvements to their VAT filing system.
In this blog post, we detail some new features and functionality that will make the VAT process quick and simple.
There is less than a month left for VAT-paying businesses to prepare for Making Tax Digital (MTD).
MTD is the government’s flagship tax digitalisation scheme that will require all businesses to keep digital records and file and pay tax online.
MTD for VAT is the first stage of the digital roll-out and takes effect from 1 April 2019.
Making Tax Digital is the latest HMRC campaign to modernise tax collection and make life easier for business owners.
The first raft of changes, which affects VAT payers, will come into force on 1 April 2019. But a survey from the British Chambers of Commerce reveals that 24% of firms have never even heard of the measure.
Making Tax Digital for VAT will apply to all VAT-registered businesses that have a taxable income over the VAT threshold of £85,000.