Skip to Content

Making Tax Digital - update

Making Tax Digital - update
Friday, October 13, 2017

Making Tax Digital has been given another new timetable for its introduction in a recent announcement from HMRC.

 

Whether this will be stuck to is something we’ve got to wait to see, but here’s the latest information you need to know.

 

What is Making Tax Digital?

 

Making Tax Digital is the beginning of a profound change in the way that you report your and your company’s earnings to HMRC.

 

HMRC, in their own words, wish to “modernise the tax system to make it more effective, more efficient and easier for customers to comply.” In addition, they estimate that “avoidable taxpayer mistakes” cost the Exchequer over £8bn in lost taxes with, in 2014-2015, £3.5bn of those mistakes coming from VAT returns.

 

Previously, multiple timetables for its introduction have been proposed. Each one of these timetables has been met with opposition from accountants, bookkeepers, trade associations, and businesses themselves for various different reasons, including software for the new regime not being ready and producing inaccurate tax returns.

 

When Making Tax Digital is introduced, every individual and every business will have their own digital tax account which they must keep updated.

 

Making Tax Digital – what’s the new timetable?

 

From April 2019, any business with a turnover of more than the VAT threshold (currently £85,000) will need to keep digital records for VAT purposes.

 

Unless yours is one of the few businesses on annual VAT, not much will change. You’ll still have to report your VAT every quarter and make payment for it, just as you do now. All that will change is that there’ll be a different digital portal to do it from.

 

Anyone below the VAT threshold will be exempt from quarterly reporting requirements until the Government has had a chance to think again about their plans. HMRC insiders however speculate that Making Tax Digital will be introduced for non-VAT-registered businesses before 2020, although that is subject to change.

 

For the smallest businesses, Making Tax Digital will be available on a voluntary basis for VAT and for other taxes.

 

Making Tax Digital – should my business and I start preparing now?

 

Most definitely, yes.

 

The introduction of Making Tax Digital may again change but it definitely pays to be ready.

 

Your business and how you run it benefit greatly from having the very latest accounting and financial available to it. That’s why we strongly urge you to keep using your Xero package at least once a week.

 

Take time once a week to keep all your invoices, incoming and outgoing, up to date.

 

Particularly if you keep your expenses up to date and you correctly classify them, Panthera will be able to properly identify the expenses you can claim back on and that will reduce the amount of tax you pay because your profit will show as lower.

 

Better and more up-to-date numbers also means that you’re better able to predict how much cash you’ll have available in the coming weeks and months based upon the amount of money you’re receiving and paying out.

 

You’ll know better whether there’s money in business to put towards growth or whether you need to save money because times ahead may be leaner.

 

If you have any questions about Making Tax Digital, the cloud, Xero, or getting your tax bills down, please call Panthera on 01235 768 561 or email the team at enquiries@pantheraaccounting.co.uk.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

Contact Us

Panthera will use the details that you have entered into this form to communicate with you on the subject of your message, and for no other purpose.
Please see our privacy policy for more details on how we manage your data.

Lets Get Started

Not Currently A Client?

Moving to Panthera is as easy as 1,2,3...

  1. We jump on a quick call to create the perfect service package for your business
  2. You e- sign your terms of engagement
  3. We get your authority to talk to HMRC on your behalf

And that’s it! From contacting your previous accountant, to updating Companies House with your new registered office address, let us handle all of the admin so that you can get on with running your business, safe in the knowledge that everything is going smoothly in the background.

Talk to Us