Advice

Making Tax Digital and Cloud accounting

Websters have been at the forefront of Cloud accounting from the launch of our Professional Online Accounting Service “WebsterAccounts” in 2003. Our online team is currently headed by Gary Eves and we are delighted that Karina Arrowsmith has joined us to strengthen our team dealing with regular Management Accounting and bookkeeping.

The deadline for Making Tax Digital (“MTD”) is in April 2019. Under MTD, if you are registered for VAT then you are required to keep your records in a digital format. Most clients already do so. The crucial difference for many of our clients is that you must use a software tool which interacts directly with the HMRC systems rather than relying on copying and pasting information into the HMRC web form. Our estimate is that at least 300 of our clients will need to make a change to their system of record keeping.

Some clients will choose to buy bridging software to link their existing record keeping tool to HMRC’s systems automatically. Others will choose to move their whole accounting to a new system. We strongly suggest that you discuss the matter with your Account Manager. We anticipate that many clients will decide that this is final impetus that they need to persuade them to move towards an Online Accounting Solution as we have advocated since 2003.

You can use our own software or buy one of the many packages on the market; e.g. Xero, Sage, QuickBooks. You can choose whichever level of service you require from as little as a quick guide to using the software to a complete back office finance solution bespoke and tailored to your requirements. We will be publishing some notes on these different options over the next two or three months so that you can have a solution in place well before the deadline.

Please contact your account manager to see how we can help.