From the 1st April 2019, VAT registered businesses with a taxable turnover above the VAT threshold will have to make the transition to digital tax. With the right software and help from qualified accountants, this process can be made easy.
Coleman & Co work with all businesses throughout Lisburn. Providing a range of accounting services, we can prepare all clients for digital tax.
Why Is Tax Going Digital?
Tax is going digital as part of the HMRC plans to ensure the UK tax systems are as easy and efficient as possible for all taxpayers. Whilst all businesses can choose to move to digital tax, it is essential for some businesses. If you have a turnover above the VAT threshold of £85,000, you must keep digital records. This also means all tax submission will have to be made with the digital software suitable for the HMRC.
Whilst the transition to digital tax may be stressful for many businesses initially, this change should help. It makes submitting taxes much easier and with tax records also being recorded, this can easily be submitted without errors. 71% of businesses currently submit records through the HMRC website. However, with digital tax, this will not be necessary and taxes can be completed through uploads from tax software.
How To Prepare
Whether your business must submit taxes through digital software or you do not exceed the VAT threshold, you should still be preparing for this change. Eventually, all businesses will have to submit taxes online as we make this transition with modern technology. This means your business should be reviewing your software and processes to ensure this is HMRC compatible.
This could mean initial costs to upgrade could be expensive for your business. Despite this, in the long term, it will be the best option for you. It ensures time spent on taxes will be reduced and that errors can also be avoided. With taxes and records all being recorded on digital software, this should make tax returns more accurate. Taxes can easily be attached and submitted to the HMRC without any issues.
For businesses exceeding the £85,000 threshold, making these changes quickly are essential. With just 3 weeks until digital tax is put in place, the sooner this software is made available, the easier it will be to submit taxes before the deadline and meet all the needs of the HMRC.
Keeping Taxes Accurate
There are several exceptions for businesses who will not have to adjust for April 2019, with a 6-month extension until October 2019. This includes:
- ‘Not for Profit’ Organisations
- Government Departments
- Local Authorities
- NHS Trusts
- Public Corporations
- Traders Based Overseas
- VAT Divisions
- VAT Groups
For all other businesses who must adjust for April, our accountants can meet your needs. With the correct digital tax software available and with our business providing tax returns for all businesses, we can make sure you are fully adjusted.
Our team manage all record keeping and tax records for every business. With our accounting systems, this allows us to reduce the number of errors in your tax records and make a quick submission before the deadline, with all records completely accurate.
If you would like more information regarding digital tax and require the support of Coleman & Co, contact our team today. We are happy to help all businesses throughout Lisburn and the surrounding areas with tax and accounting services. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.