We are a business that has spent decades helping its clients with various financial matters. Today, many people think of us as the foremost establishment working in tax returns Camden has. Because we are professional advisors, it is up to us to give you an understanding of the tax implications of your actions. Additionally, we will help you to plan ahead and put your affairs in order correctly.
A date to note
HMRC is currently reminding businesses of an important date that is rapidly approaching. From November 1st 2022, they won’t be able to use their current VAT online account to submit their returns anymore. By law, every VAT-registered establishment now has to sign up to Making Tax Digital (MTD). As part of this they must use compatible software to maintain VAT records and file returns.
The aim of MTD is to assist businesses in doing their taxes correctly the first time by minimising errors. What this will do is make it simpler for everyone to oversee their tax matters by going digital. In turn it shall enable them to grow.
Over 1.8 million companies are already experiencing advantages from the digital tax service. More than 19 million tax returns have had successful submissions via MTD-compatible software so far.
What happens if people don’t use MTD-compatible software?
In under a month, companies currently filing their VAT returns monthly and quarterly will have to make the change. The exception is if HMRC has agreed to make them exempt from filing online and MTD. A business may also be exempt if insolvency procedures are ongoing.
Businesses may fail to file their VAT returns via MTD-compatible software. If so, there could be a financial penalty. They can avoid this by ensuring they have everything in order before the deadline.
A business might already keep digital records for their taxes. If this is the case, they have to ensure their software is MTD compatible. Moreover, they will have to sign up to MTD prior to filing their next return.
The Economic Secretary of the Treasury, Richard Fuller MP, commented on the situation. He said that MTD could aid companies in getting their taxes right on the first attempt. This cuts the administration burden and gives companies more time to use elsewhere. They will be able commit it towards growing their business. He is encouraging VAT-registered establishments that have not registered for MTD to go online to sign up.
What to do next?
If you are yet to sign up to MTD, you need to act soon. There are four things you must do:
- Choose the MTD software you will use
- Check permissions so you allow the software to work with MTD
- Keep digital records for all VAT returns, including current and future ones
- Complete MTD sign up and use the software to file returns
Speak to us about tax returns in Camden
At Brian G Lonis & Co, we have developed an excellent reputation for supplying first class advice. We offer this in addition to top tier services for all personal and business clients. The sector and size won’t matter; our employees will still be able to offer high value, cost efficient solutions.
So, if you wish to work with the best establishment for tax returns Camden has, please let us know. We can give you all the support you need and ensure you keep good records.