If you own a business in the UK, you probably have heard about Making Tax Digital (MTD) for VAT. As the name suggests, it is an initiative by the UK government where HRMC is working to make it easier for businesses to file their returns. As an entrepreneur within the region, it is important to note that the deadline is fast approaching and you need to equip yourself with the necessary knowledge and skills before then.
Some of the benefits of MTD for businesses is that it will reduce the amount of paperwork, reduce errors, improve efficiency and bring about better opportunities among others. Therefore, companies that record an income above the £85,000 threshold need to fasten up before time catches up with them. Accountants on the other hand also have a part to play to ensure that their clients are well educated about the MTD plan.
Below are some of the ways both businesses and accountants need to prepare for MTD for VAT:
Preparation For Businesses
1. Know That The Clock Is Ticking
As a business, you need to understand that 1st April is around the corner. If anything you should be in the last stages of ensuring that everything is in check. However, if you are still trying to figure out about MTD, you still have some little time. It is the right time to put your accountant close and ask them to guide you through the process before it becomes too late.
2. Accept The Change and Stay Updated
MTD is happening! You need not to remain in the cocoon of trying to resist the change. Therefore, equip yourself with the necessary information as well as the right compatible software. Also, follow up on the updates that HRMC is regularly sharing about the initiative.
10 Chartered Accountants in Northampton can help you get ready for this significant change in VAT accounting and reporting.