Making Tax Digital (MTD) is a government policy that requires UK businesses to record and submit their tax data digitally. MTD started from 1 April 2019, requiring all VAT registered businesses with a turnover above the taxable threshold of £85,000 to provide digital tax records and returns.
To file tax records and returns digitally, businesses must use government-approved accounting software.
As of April 2022, MTD now affects all VAT register businesses, meaning you might need to invest in some accounting software to ensure you are compliant for the new tax year. Even small businesses and self-employed will need to prepare for this too, as MTD will affect all businesses by 2023.
So, now is the time to invest in a quality cloud accounting software! Not only does it ensure you are compliant with HRMC rules over digital tax records and returns, but also streamline many aspects of your bookkeeping!
Cloud accounting software, such as FreeAgent, Xero, and QuickBooks, offers many advantages to your daily accounting processes. For example, the software can automate all your cashflow data, making it quick and easy to record your payments, receipts, expenses, and other important data.
Moreover, by choosing cloud software, you can access records 24/7, even on mobile devices, while benefiting from increased security, multi-user accessibility, automated updates, and much more.
Simply put, managing your books will never be easier with the right accountancy software. Plus, it’s going to be legally required for Making Tax Digital, so don’t wait around any longer!
Struggling to find the best accountancy software for your business? Then let Yorkshire Accountancy help today! We are partnered with several leading accountancy software products that make bookkeeping quick, easy, and accurate.
