Making Tax Digital for VAT became mandatory in April of 2019.
It applies to the majority of businesses with a taxable turnover above the VAT threshold of £85,000. These businesses needed to move from a manual or desktop accounting package to an online package. They would need to use software to submit their VAT returns to HMRC. The exact date that businesses were subject depended or will depend on their quarterly return date. It applies to the first prescribed accounting date starting on or after the 1st of April.
MTD has inexorably driven the move to online software with many seeing its arrival as an annoyance and disruption.
Moving to a new system will always have teething problems and learning new software can be stressful. Of course, there will always be people who love new tech and will watch endless video guides; learning every feature, shortcut and add on. But, there’s also something to be said for not trying to run before you can walk. Once your business is compliant then why not take your time with Xero integration, or which ever cloud-based software you have chosen?
James Green is Director of Paul Green Period Mouldings and a client of Rawcliffe & Co for 17 years.
Paul Green Period Mouldings, based in Lytham St Annes, is a family run business and was established over 30 years ago. The business supplies and installs wood-burning stoves, fireplaces and gas fires. They also manufacture and fit plaster surrounds and provide marble cutting services.
We began using Xero in December of 2018 as a result of Making Tax Digital. Rawcliffe were very proactive in ensuring we were compliant with MTD ahead of its implementation. They offered us guidance on the software whenever we weren’t sure about something.
We acknowledge that we aren’t using Xero to its full capability as of yet as we are taking it slowly with a gradual approach to integration. That being said we’ve been really impressed with its simplicity. Invoicing through Xero is very straightforward and easy and now we can compile all of our VAT returns within one system which is great.
Because my Accountant has access to our Xero he is able to log in at the same time as us, look at any issues we may be having and talk us through how to resolve them.
I would definitely recommend Xero to other businesses.
If your business is ready to make the switch get in touch and one of our certified advisers will help you to get the ball rolling and migrate to Xero.
What our other clients say about Xero…