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For vat periods commencing on or after 1 April 2022, ‘Making Tax Digital (MTD) applies to all VAT registered businesses regardless of turnover.
There are certain requirements for MTD for VAT. The main requirement is for businesses to maintain digital records using what HMRC refer to as ‘functional compatible software’. This means a software program that can connect to HMRCs’ systems. The functions must include the ability to keep and preserve records in a digital form, create a VAT return from those records and provide HMRC with the return digitally.
Cloud accounting software, such as Xero and QuickBooks, are amongst the packages that are compatible with HMRC’s online portal. Cloud software has been in use for years now and has many benefits. Multiple users can be set up, with varying security levels, ensuring that everyone can access real time information and bookkeeping records are kept efficiently. Accountants are able to collaborate with clients, quickly and easily, offering advice on up to date figures.
If you would like any further information, please contact Gillian Dixon in our Kelso office or Tracy Lee in our Berwick office.
Gillian Dixon
gillian.dixon@renniewelch.co.uk
Tracy Lee
tracy.lee@renniewelch.co.uk
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We are looking for an experienced Audit Senior to join our expanding audit department to assist with managing a diverse and rewarding client portfolio. A qualified/semi-qualified accountant you will work along side the audit manager and partners in managing and delivering audits, and also benefit from ongoing support and development.
Many will be aware of the pending changes from 6 April. Broadly the Chancellor announced a 1.2% increase to 15% and a reduction in the salary threshold from £9,100 to £5,000. At the same time the employer Annual Allowance will also change.
This may mean that some employers might be due to pay payroll taxes for the first time. With this comes questions and also planning opportunities as to what is the most tax efficient strategy, particularly for company directors.
For guidance and advice on this please get in touch.