HMRC’s Making Tax Digital (MTD) plans will eventually 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 for VAT purposes. They will need to do so from 1 April 2019.
• Businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2021.
• 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. My clients like it.
For businesses who will not be 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 complete this and email it to me. You also send me your paper (or digital) 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.
For clients who are time poor or not tech savvy I complete their accounts for them.