Two suprising benefits of Making Tax Digital
'If you go through your life with your head in the sand all people will see is an ass!'
This is a great saying, and one very apt when it comes to Making Tax Digital.
It has a profound impact on people that causes them to stick their heads in the sand.
The trouble is, in general, people don't likes change - and certainly not one that may cost you money.
But unfortunately, there really is no getting away from Making Tax Digital - that said, it's not all bad news and here's two reasons why:
1. Making Tax Digital may actually end up saving you time and money
You usually submit a VAT Return to HMRC every 3 months, over your ‘accounting period.’
The VAT Return records things for like:
your total sales and purchases
the amount of VAT you owe
the amount of VAT you can reclaim
what your VAT refund from HMRC is
And you must submit a VAT Return even if you have no VAT to pay or reclaim.
It's a pain to keep on top of because you must keep records to support your claim and show the VAT paid.
Making Tax Digital allows you retain a constant online record of expenses and most of the Making Tax Digital compliant vendors have mobile apps, which makes managing your records a breeze.
It's quicker, it's more cost effective and it reduces your stress during submission periods.
2. When Making Tax Digital goes live in May 2019, you might not be affected.
This is because when Making Tax Digital goes live after April 2019, only those who are VAT registered need comply.
The next date of note is May 2020 - at which point those submitting income and corporation tax returns will be required to comply.
(Making Tax Digital for VAT may also be extended to all VAT registered businesses although this has yet to be confirmed.)
If you'd like to find out more about Making Tax Digital just click here.
We can help you understand what Making Tax Digital is and how it will effect you in just 10 minutes.
So why don't you give me a call or send me an email - make it the very next thing you do.