HM Revenue and Customs have announced this week in their updated guidance that all VAT registered businesses should keep digital records from their first VAT return starting on or after 1 April 2022, this means that all VAT registered businesses will be within the scope of MTD for VAT regardless of turnover. Those taxpayers voluntarily registered for VAT will be obliged to sign up for MTD by then at the latest. This is a significant step in the further implementation plan and provides clarity and what would for now appear ample time for these businesses to get their affairs in order.
As it stands if you are a VAT registered business with a taxable turnover above £85,000 you should be keeping digital records now and submitting VAT returns under MTD otherwise there are potential penalty implications. Many of these businesses are now taking advantage of the wonders of modern technology, especially what cloud accounting can offer. With automated data entry and real-time information, businesses have never before been in a place where maintaining their records has been so pain-free.
Xero is one of the leading cloud accounting software packages – it runs on the internet and to access it you visit a website and sign in with your username and password, which means you can use cloud accounting software from any device as long as you have an internet connection.
Making the transition from desktop accounting software to Xero is straight forward with the right expertise. At Randall & Payne we are proud to be Xero gold partners and have staff across all teams who are Xero-certified, including adviser, migration and payroll. This certification means that our team can log in to Xero accounts at the same time as the client and are able to answer questions and give advice at the time of need.
We offer a full bookkeeping service for clients who would prefer to concentrate on their businesses, through to advising on appropriate packages, reporting structures and ‘add-on’ applications to complement the basic accounting package.
If you would like a Xero demonstration or need any help with Xero please call 01242 776000 or use our contact form to get in touch.