Act quickly to prepare for digital tax regime
By Martin Paul - Senior Reporter
A DALE accountancy firm has teamed up with an international software company to prepare their clients for huge changes in how VAT and tax information is to be submitted.
From April 1, all VAT-registered businesses with a chargeable turnover of more than £85,000 per year will have to file their VAT returns to Her Majesty's Revenue and Customs (HMRC) digitally via cloud-based software.
In anticipation of the move, Barnard Castle-based Butler and Gee Accountants have partnered with QuickBooks, a cloud-based accounting software company, to meet the requirements of HMRC’s new “Making Tax Digital” (MTD) legislation.
Butler and Gee director Chris Butler said: “The days of manual and spreadsheet bookkeeping are over.
“MTD is big new legislation which will affect a lot of businesses in Teesdale and by partnering with QuickBooks we can ensure both existing and new clients are compliant with MTD.
“Like any new method it might seem daunting and frightening to start with but with some initial training I am optimistic businesses will adapt and enjoy the many benefits of QuickBooks and their online product.”
He added, however, that clients have the option of using the package themselves or the firm can operate it on their behalf and as the software is cloud-based, both the client and their accountants have instant access.
Mr Butler added: “The main benefits are that the client will always be up-to-date and accurate with bookkeeping and VAT filing and they will also instantly be able to see how the business is performing via various reports.
“The online platform also means that the client can use their PC, lap top or mobile phones to access their books and accounts.”
The firm is now a platinum partner for QuickBooks and all of the accounting staff are trained and certified to advise and operate QuickBooks on behalf of their clients.
The partnership also means that current and new clients are eligible for a discount on their monthly subscription to QuickBooks.
QuickBooks regional development manager Kelly Hurst said: “It is extremely user-friendly.
“People can use the app to send invoices on the go and to take photographs of receipts.
“We were one of the first to link up with HMRC so our system connects seamlessly,” she added.
Ms Hurst added that the ease of the system had the added benefit of freeing up accountants’ time to offer business advice and other useful services.
VAT-registered businesses which fall under the annual £85,000 threshold have until April 1, 2020 to be complaint with MTD.