Services

MAKING TAX DIGITAL

Making Tax Digital (MTD) is changing the way UK businesses, accountants and bookkeepers keep their records. Introduced by the HMRC it is designed to make sure the UK tax system is effective, efficient, and easier for taxpayers.

Making Tax Digital currently means it is mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using HMRC-recognised MTD software like Xero.

In light of the impact of COVID-19, Making Tax Digital will not be extended for any new taxes or businesses until 1 April 2021.

Although this gives some leeway, now is the time to get yourself prepared for digital accounting systems which will soon become mandatory.

Christchurch Accountants are proud to be a Silver Champion Partner with Xero - one of the UK's leading cloud-accounting software providers.

Xero has been working with HMRC for over three years to ensure the transition to digital tax is as uncomplicated as possible. Once set up, the software takes care of your invoicing, recording of expenses, transactions, and reconciliations, plus a whole lot more.

Cloud accounting means that you can transform the way you manage your business bookkeeping and accounts. You can log in online, or from a smart phone or device to see real time information safely stored on a cloud server.

The team at Christchurch Accountants have undergone rigorous training in Xero and will be happy to help you integrate digital accounting into your business. Another benefit to Xero is that your existing platforms such as Sage and QuickBooks can be easily converted to Xero.

With the introduction of Making Tax Digital, the government has set out to transform the tax system with more efficient and simpler administration. With HMRC plans to move towards digital filing of accounts for everyone, let us help you prepare now and get MTD ready.