From April 2018 HMRC are planning the most major change to the taxation system for many years, with what they are calling Making Tax Digital.
This will bring the end of the annual tax return and the introduction of a quarterly summary return from a business’s accounts, which will be sent electronically to HMRC. Most businesses will need to have their accounts running by then on a computerised accounting system. Software providers like Xero and Sage are working closely with HMRC to ensure their systems will provide these quarterly returns.
The changes will initially affect sole traders, partnerships and landlords, with limited companies by April 2020. It is therefore essential that businesses are prepared for these changes, well before their introduction.
So now is the time to contact us, to help you make the transition to Making Tax Digital. Our cloud-based accounting solutions will be key to making this transition.
Along with the introduction of quarterly returns, there are also plans to simplify the taxation system and we are keeping in touch with HMRC, to find out about these changes before they are introduced.