Everything Business Owner Needs To Know About Making Tax Digital

Jan,2019 By Smarty Software Knowledge Base

In this week’s podcast we’ll be covering all aspects of making tax digital ranging from the new legislation that is making this a necessity up to how Smarty can help you automate and increase efficiency when it comes to your tax reporting. Smarty stands for digitalising and taking businesses to the cloud so making tax digital has always been the aim for Smarty; and now with recent changes this is more crucial to your businesses than ever. HMRC are in full swing with the Making Tax Digital initiative and has already recognised Smarty as compliant with the new initiative. With all of this in mind, lets discuss the impacts of making tax digital, the timeline to get your business ready and ways you can make it easier with Smarty.

The timeline for the Making Tax Digital initiative has come around very quickly – the ability opened up in October 2018 and it is set that all UK businesses with a turnover above £85,000 will have to be using this service on the 1st of April 2019. There are about 3.5% of UK businesses that are temporarily exempt and these businesses can defer for 6 months such as trusts, not for profit, government departments and a couple others that will be given until October 2019 to get ready for it. This initiative is crucial for HMRC and the UK economy to continue growing at the rate we all want – HMRC says that this digital focus will reduce tax errors and generate £610 million in extra revenue in 2020-21. This should also reduce the risk for businesses submitting incorrect tax returns and having to pay penalties. Another key thing to consider is that VAT filing must be done via Making Tax Digital compliant software – there won’t be an option for filing this directly on the HMRC website or via paper forms. With this push into using accounting software it’s essential that you begin to consider the accounting software out there that can take a hold of your businesses finances and both increase your efficiency as well as be able to submit your VAT correctly, accurately and on time.
Smarty works for businesses of all sizes – whether you’re just starting out or if you’ve been in the game for a little while, Smarty can capture your current processes and improve them tenfold.

Smarty has the capability of connecting with your company’s bank accounts, share the information easily with your accountant so that they’re kept in the loop as well as submit your VAT returns within the software automatically. Smarty will generate the reports and send them straight to HMRC, really cutting down on the potential for errors in your filings. Smarty also hands the control of your business back to you – with the reporting powers from the Smarty dashboard you’ll be able to start generating reports without the need of your accountant because it’s so easy. At the touch of a button you’ll be able to view the reports on your smartphone, tablet or computer and work on the move whilst sharing your reports with anybody you need to.

The Making Tax Digital movement will come in to affect in your first full VAT period that starts on or after the 1st of April, so if your current VAT period ends on the 30th of April then it’ll start under MTD on the 1st of May. This means that you’re only a couple months out from needing to be all set up and ready for the transition. As a small business owner operating from essentially my kitchen I know how easy it is to put off these changes especially when there’s initial set up costs. Now is the time to really take the leap in to Smarty Software – with functionality ranging from covering the new tax legislation up to advanced reporting from an innovative dashboard, reporting on all aspects of your business to get a clear picture of your financial position at any moment, automated invoicing and chasing of payment, bank connection and reconciliation and tones of other features – right now is the best time to get on board and take control of your company’s finances.

Now that you’ve got yourself in the mindset for Making Tax Digital, head over to smartysoftware.net and request an instant demo – you’ll have the change of using the Smarty Software to see for yourself why your business needs Smarty.
 


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