Jump to content

Digital tax accounting for small businesses

Recommended Posts

Just wondered what other small business owners thoughts were on the imminent 2018 introduction of digital tax accounting and quarterly returns on a suggested threshold of just £10,000

 

All being done for our benefit of course?!

Share this post


Link to post
Share on other sites
Just wondered what other small business owners thoughts were on the imminent 2018 introduction of digital tax accounting and quarterly returns on a suggested threshold of just £10,000

 

All being done for our benefit of course?!

 

Not sure at this stage. As long as HMRC give owners the tools to do it, I cannot see it being a problem. I recently started using their downloadable PAYE app and it is very good/useful.

Share this post


Link to post
Share on other sites

Businesses will not now be mandated to use the Making Tax Digital for Business system until April 2019 and then only to meet their VAT obligations. This will apply to businesses who have a turnover above the VAT threshold - the smallest businesses will not be required to use the system, although they can choose to do so voluntarily.

 

https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

Share this post


Link to post
Share on other sites

I'm glad it won't apply to me, Happy with things as they are. As pretty much a one man band would prefer not to have an extra 3 deadlines / time with bookkeeper a year to keep in mind enough to keep on top of !

Share this post


Link to post
Share on other sites
I'm glad it won't apply to me, Happy with things as they are. As pretty much a one man band would prefer not to have an extra 3 deadlines / time with bookkeeper a year to keep in mind enough to keep on top of !

 

If you get a good software package it will work out easier and cheaper for you. There is no need for a book keeper, perhaps an accountant to keep an overview and advise on regs/legislation etc.

 

We use QuickBooks, the version you buy on a disk, not the on line version. There are differences in the two packages. You just enter all invoices and purchases on there and all VAT is done automatically and sent electronically. Any other payment due to HMRC is done by (a simple on line) BACS transfer.

 

We pay our accountant to do the year end report and advise on tax to ensure we are compliant. Everything else we do ourselves. Its not complicated if you get the right software to do it for you.

Share this post


Link to post
Share on other sites

I have quickbooks, and a bookkeeper and am very fond of both !

 

Only use the quickbooks for invoicing though (like how it works, used to it) and meet with bookkeeper mid april with a big stack of receipts and downloads ! simple :-)

 

Can see how insisting on quarterly would help them, and at a stretch help promote good practice in firms maybe with a few staff or that run larger credit and costs than I but would reckon the majority of sole trader tradesmen / contractors from all sectors plus many others would have justifiably found it a big imposition one way or another

Share this post


Link to post
Share on other sites

If you enter everything into quick books it works everything out for you. It’s quick and easy if you do it daily. We then file our invoices and receipts by month and save them should HMRC ever wish to audit. QuickBooks enables us to run reports so it’s cheaper only needing account to do year end report on the reports we have generated (and his advice). No need to pay someone else to do any book keeping.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.