KashFlow Online Accounting
Making Tax Digital (MTD) will fundamentally change the administration of the UK tax system. On 13 July 2017 the government announced a new timetable and changes to the implementation, which mean that MTD will not take effect until April 2019 and will only be mandatory at that time for VAT registered businesses over the VAT threshold.
Making Tax Digital – what does it mean for you?
Making Tax Digital is a government initiative that sets out a bold vision for ‘a transformed tax system and the end of the tax return’ by 2020. Not sure what it means for you? Here’s what you need to know:
What is Making Tax Digital?
Making Tax Digital is all about making tax administration more effective, more efficient and easier for taxpayers, through the implementation of a fully digital tax system. The roll-out of the initiative has already begun. Every small business owner and individual taxpayer now has access to a digital account that they can use to check their records and manage their details with HMRC. Further changes are planned in the coming months and years; you can see a breakdown of the roll-out and timescales opposite. Software providers like Iris KashFlow are actively engaging with HMRC to help shape this process and simplify the shift for small businesses. Making Tax Digital is expected to be fully implemented by 2020. By this time you should see the following major changes to the way you manage and report your business taxes:
- Through your digital account you’ll be presented with a complete picture of your business’s tax affairs and you’ll be able to manage all of your liabilities at the same time, in the same place.
- HMRC will collect and process information affecting tax in as close to real time as possible. This should prevent any tax due or repayments owed from building up.
- You’ll no longer have to wait until the end of the tax year to know how much tax you have to pay. Who does Making Tax Digital apply to? The changes outlined in the Making Tax Digital initiative will apply to a wide range of taxpayers, including most businesses, self-employed people and landlords, as well as individual taxpayers. However, HMRC has suggested that the initiative won’t apply to “the small minority who genuinely cannot use digital tools”, or to small businesses with an annual income below a proposed threshold of £10,000. This threshold would be based on the firm’s income from the previous year.
The benefits of Making Tax Digital
- Know where you stand – with a full picture of your business’s tax affairs in your digital account.
- Save time – by having access to all your business’s tax info in a single place.
- Save hassle – by managing all your business tax affairs online.
- Plan and budget more effectively – with a real-time calculation of how much tax you owe. More information is available at http://www.gov.uk/personal-tax-account
What does Making Tax Digital mean for you?
A new way of reporting information to HMRC The move to a more digital tax system should come as welcome news to the many taxpayers who already choose to report much of their information to HMRC online of Self Assessment tax returns .
The shift to digital should also help to iron out some of the issues that can make the current method of reporting information to HMRC frustrating for business owners. Specifically, Making Tax Digital promises to end ‘bureaucratic form-filling’ and to ‘remove the risk of missed deadlines and unnecessary penalties’. The end of the tax return One of the biggest implications for small business owners is the eradication of the annual tax return. By 2020 most businesses, self-employed people and landlords will instead be required to keep track of their tax affairs digitally and to update HMRC at least quarterly via their digital tax accounts, or more often if they’d prefer.
HMRC has said that this doesn’t mean you’ll have to complete a full tax return four times a year; you’ll simply need to provide more regular updates online. The introduction of a ‘real time’ tax system means that instead of reporting information on tax returns and paying liabilities long after the end of the tax year, you will be able to see a real-time view of your business tax affairs and liabilities through your digital accounts.
This should make it easier to understand how much tax you owe and to budget accordingly. What next? The upshot of all these changes is that, if Making Tax Digital applies to you, you’ll be required to use digital tools, such as software or apps, to keep records of your income and expenditure. HMRC has stated that it won’t provide its own software, but will ensure that basic apps and software products are available.
However, many businesses and their accountants will choose to use more comprehensive commercial software, like Iris KashFlow. These tools use the data from your day-to-day business activity to build an accurate picture of your business’s tax data, highlighting any possible errors and offering prompts for information that might otherwise be overlooked. Once your software has compiled the relevant data, your accountant will then submit it directly to HMRC, either via a computer or a smartphone. We will be happy to talk through the options with you and explain how they plan to work with you as Making Tax Digital is rolled out.
Why choose KashFlow for your business?
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KashFlow offers clients a unique on-line accounting experience. All bookkeeping and accounting records are accessible on-line & secured safely in the cloud. This means both you and your accountant can have access to the same data in real-time. Clients can customise software, create invoices, enter payments and receipts.
Clients can even automatically upload their bank data to KashFlow using the secure bank feed option, saving you time and also reducing your accountancy fees each year.
Clients also receive expert on-line & telephone support which is all included in their fixed price plan.
Freeman & Co. are established qualified Chartered Certified Accountants based in Market Harborough, Leicestershire offering its clients both the traditional face to face contact but also providing clients with a ‘virtual’ on-line accountant. If you are finding it difficult to arrange a meeting, don’t worry, as we can do this on-line via Skype, telephone or email.
Clients can be located a mile away from our office or several thousands of miles away. Our unique KashFlow on-line accounting service enables us to reach out to clients anywhere. We even have clients in New Zealand!
Our KashFlow package offers highly competitive fixed price services. Please see below for details of our price plans or click here for more details about KashFlow.
What our clients have to say?
Client survey – Mr R D Norwood
Sole traders & Partnerships
Discovery
This is our entry level package for sole trader and partnerships who are happy to process their own bookkeeping data, but need help with their end of year accounts and personal tax return submissions.
From £56
+VAT per month
- Telephone & Skype support
- On-line accountancy software
- Year end accounts
- Self Assessment
- Secure bank feeds
Optional Bolt Ons :
- VAT registration & filing
- Payroll
- Bookkeeping
Endeavour
This is our mid-tier package for sole trader and partnerships who are happy to process their own bookkeeping data, but need help with their end of year accounts, personal tax, VAT, and payroll submissions.
From £96
+VAT per month
- Telephone and Skype support
- On-line accountancy software
- Year end accounts
- VAT registration & filing
- Employee payroll
- Secure bank feeds
- Self Assessment
Optional Bolt Ons :
- Bookkeeping
Enterprise
This is all-in-one package for sole trader and partnerships who not dot wish to process their own bookkeeping data, and also need help with their end of year accounts, personal tax, VAT, and payroll submissions.
From £125
+VAT per month
- Telephone & Skype support
- On-line accountancy software
- Year end accounts
- VAT registration & filing
- Employee payroll
- Secure bank feeds
- Self Assessment
- Bookkeeping
Limited Companies
Discovery
This is our entry level package for limited company owners who are happy to process their own bookkeeping data, but need help with their end of year accounts, personal tax return and director payroll submissions.
From £90
+VAT per month
- Telephone & Skype support
- On-line accountancy software
- Year end accounts
- Self Assessment
- Directors’ payrollv
- Secure bank feeds
Optional Bolt Ons :
- VAT registration & filing
- IR35 contract review
- Bookkeeping
Endeavour
This is our mid-tier package for limited company owners who are happy to process their own bookkeeping data, but need help with their end of year accounts, personal tax, VAT, and payroll submissions.
From £150
+VAT per month
Recommended
- Telephone & Skype support
- On-line accountancy software
- Year end accounts
- VAT registration & filing
- Directors’ & employee payroll
- IR35 contract review
- Secure bank feeds
- Annual return filing
- Self Assessment
Optional Bolt Ons :
- Bookkeeping
Enterprise
This is all-in-one package for limited company owners who not dot wish to process their own bookkeeping data, and also need help with their end of year accounts, personal tax, VAT, and payroll submissions.
From £190
+VAT per month
- Telephone & Skype support
- On-line accountancy software
- Year End accounts
- VAT registration & filing
- Directors’ & employee payroll
- IR35 contract review
- Secure bank feeds
- Annual return filing
- Self Assessment
- Bookkeeping
Switching to Freeman & Co. from your old accountants is extremely easy as we take care of everything for you.
Please call us today on 01858 461164 or email your enquiry for a free initial consultation.