HMRC’s Making Tax Digital (MTD) plans will require all businesses to keep their accounts digitally using on-line software.
• Businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records and only for VAT purposes. They will need to do so from 2019.
• Businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
• Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes.
I use Quickbooks who are an on-line, cloud accounting software provider (www.quickbooks.co.uk
Quickbooks are the market leader in on-line accounting software. Their software is quick, reliable and cost effective. It will enable you to stay on top of your finances as well as comply with MTD.
For businesses who will not affected by MTD I use Microsoft Excel which you probably already have. As a client I give you an Excel cash book, with simple instructions. You write this up and email it to me. You also send me your accounting records. I check your data and then link it to my accounts model. This prepares a periodic profit and loss account and balance sheet. I send this together with any comments and recommendations back to you.