Getting ready for Making Tax Digital should be on all business owners minds right now as HMRC widen the scope of MTD. This means that most businesses will need to be using Digital accounting software from April 2024. At Maynard Johns Chartered Accountants, we have lots of solutions to help you adapt to this new way of working.
Getting ready for Making Tax Digital – what should you do now to prepare
Our recommendation is that you get ready early. The best time to change your systems is at your year-end as it gives a clean break between years. Many of you will have a 31 March or 5 April year-end and you really do not want to wait and deal with these changes on top of having to send live data to HMRC when you are still learning the system. In the first rollout of the scheme, we recommended our clients adopt the new systems 12 months early so that they were all ready for MTD in advance., and the feedback we got was overwhelmingly positive with many saying they were grateful to have this run in and practise period.
So it’s not too early to start.
Everything you need to know about Bridging Software
If you are thinking about using Bridging software, read this guide from Xero with everything you need to know.
How Maynard Johns can help with getting ready for Making Tax Digital
If your current bookkeeping method does not allow you to submit directly to HMRC through compatible software you need to start preparing.
If you think that you do not have the time to do the processing yourself, we can offer an all-inclusive fixed fee package that will take the worry off your shoulders. We will carry out all of your bookkeeping in-house and, once you have approved the figures, submit your VAT or other reports to HMRC on your behalf with our fully compatible in-house software. We can show you how to send us your information digitally so that you no longer have to keep the paperwork and there is no need to deliver it to our office. this can be done with a scanner ( used where there is a lot of information ) or simply by taking a picture on your phone.
We can give you access to the software so you can see the data and track your business progression through the year keeping you in control and able to make important business decisions based on actual results.
If you issue sales invoices we can show you how to do this in the software and offer a hybrid solution where you use the sales function to raise invoices and send statements, where required, and we look after everything else. Using software for your sales can often lead to increased cash flow as customers often pay quicker and we can even help you in setting up automated collections of payments from customers through credit cards online or by direct debit.
Software Set up & Training
Alternatively, if you currently have a manual bookkeeping system and want to learn a new system we can offer bespoke set-up and training on Xero software and fully customised to suit your business. Our staff are all Xero certified and we have qualified trainers in our team that have many years of experience in helping businesses with their accounting software packages.
Most clients moving to a computerised programme can’t believe how easy it is and how little time it can take if it is all set up correctly at the start. They also report feeling more in control and noticing better cash flow.
If you are getting ready for Making Tax Digital and currently have a computerised bookkeeping system but are unsure if it is compatible, contact us for assistance.