Here at Direct Peak we are specialist Xero accountants in Peterborough. We work closely with our clients to help them get the most from their accounting and bookkeeping. With ‘ making tax digital ’ discussions and updates taking place all over the media, internet, tv and pretty much everywhere you look – it is not surprising that we are being asked about it.
So, we thought we would put together a few main points to help small business owners understand what Making Tax Digital will mean to their small business;
- All businesses and landlords will be affected by Making Tax Digital
- Making Tax Digital is compulsory and dependant on your business circumstances will need to start using it in 2018, 2019 or 2020.
- You will need to record all tax affairs digitally and this can either be done by using online accounting software, like Xero accounting software, for example.
- Your accounts team, finance team or your accountant will provide the information to HMRC on a quarterly basis, as electronic information.
- It is expected that Making Tax Digital should reduce the amount of time, effort and stress it currently takes you to prepare and file your taxes.
- Making Tax Digital will enable you to get a centralised view of all your tax information, entitlements and liabilities. This means, as a business owner, you will know exactly how much you owe at any point.
While Making Tax Digital will not make filing taxes any less financially painful, it should be faster and easier to prepare taxes, report taxes and file your taxes.
If you’re concerned about how Making Tax Digital will affect your business and what you need to do to make sure your business is ready for Making Tax Digital then please check out this information we have put together.
Alternatively you can contact us directly and we will be happy to answer any questions you may have about Making Tax Digital for your business.