HMRC – Making Tax Digital

  Below is a brief summary about the ‘Making Tax Digital’ consultations and proposals from HMRC.   HMRC’s vision is for businesses to be able to easier understand and manage their tax affairs. It wants to make greater use of the information that it already holds such as bank and building society interest to make things easier on the tax payer without them having to compile this information again. Digital record-keeping will be required from 2018 for most businesses, sole traders and landlords in order to report quarterly to HMRC. HMRC aren’t looking to become software providers, they will expect the tax payer to use third party software although they are trying to ensure free options are available. Those with income below £10,000 will not be required to use the new ‘making tax digital’ system. Further thresholds haven’t been decided yet. This is being looked at while HMRC are reviewing how they can simplify the tax system. Other areas they are looking at are the thresholds for cash vs revenue accounting and similar areas. One thing we can say for certain is that tax administration in the UK will look very different in 5 years time. At Courtley West we keep up to date on all the current developments at HMRC and we proactively engage with many of our clients using the cloud based book-keeping systems which ultimately will be very instrumental in the delivery of the quarterly reports. As always, if you have any queries about how this may affect you or you’d just like to know how we may help your business, please get in...

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Cloud Accounting – Is it time to embrace the cloud?

When I first started out in the world of accountancy most clients kept their records manually. They used large cash books and ledgers which were written up diligently by their book-keepers. Some had computerised systems, this enabled more analytical reporting to help grow their business, statements could be generated at the push of a button to send out to customers and when necessary a backup could be taken and passed to their accountant. Now most of our clients have computerised systems, they are very good and they can save the client time and improve productivity. But time waits for no one and things have moved forward again. We can bank on-line, pay our bills on-line and do the supermarket shop on-line, so why not prepare your accounts on-line? It’s important to be able to access the relevant financial information for your business in real-time or as close to it as you can get. We have smart phones, laptops, tablets, work computers and more than one person wanting to access this information at any given time. This is where the cloud comes in… The information is accessible independent of your location. You can view, edit and even send invoices from your desk, your phone or your home. The data is held remotely, therefore no longer at risk from theft or fire in your office. The data is backed up automatically on multiple servers by the service provider. You don’t need to do anything. Efficiency is improved. Multiple users can access the data from multiple locations on multiple devices. The software is always up to date, saving further time and costs. Your accountant can access the data without you having to e-mail a backup and wait for it to be returned. We’re pretty excited by the new developments in technology; the new systems can talk to your CRM or project management software giving you the ability to grow your business with minimal fuss. We’re now partnered with Xero, one of the leading service providers of cloud accounting services, so if you have any queries or want to see a demo, please get in...

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