Making Tax Digital

From 1st April 2022, every VAT registered business will be required to file their VAT returns digitally through HMRC’s Making Tax Digital system.   This means all VAT registered businesses, regardless of their level of turnover, which hadn’t previously been submitting their VAT returns to HMRC via MTD compliant software, will now be required to…

Reconciling your bank account is an important task in managing your businesses finances. This is because, by doing this we are making sure that all business transactions are being recorded and more importantly, you can identify any unusual transactions that may be taking place in your company. Xero has a feature in which you can…

One of the first things you will need to do when starting to use Xero is to connect your bank accounts, this is a relatively simple step by step process.   Step 1: Go to the accounting menu on the top blue ribbon bar and select bank accounts.   Step 2: Click add bank account…

For businesses that require staff to have access to their Xero but do not want their employees to be able to view all details of their business there are different permissions and roles you can allocate to different users.   Roles Adviser- This role is the highest role you can give someone; therefore, it includes…

If you’ve never used a cloud software before coming to a decision on what package to choose can be quite daunting. Well, in this blog I am going to summarise what different packages are available and tell you what each package does and also, what it doesn’t do.   There are three packages that Xero…

Making tax digital (MTD) for income tax is being delayed, originally due to come in from 6 April 2023 this has now been delayed. New proposed timetable: 6 April 2024: MTD for individual landlords with >£10k pa of rental income. 6 April 2025: MTD for general partnerships. No sooner than 2026: MTD for corporation tax.…

A recent publication has quoted a survey suggesting that 8 out of 10 plumbers are at risk of penalties when the impending Making Tax Digital rules are enforced.   Half this number is quoted as being unaware of the impending changes. Although the rules do not bite until April 2023 it is a brave tax…

Under current rules, businesses draw up annual accounts to the same date each year. The profit/loss for the tax year is usually the profit/loss for the year to the accounting date – called the basis period.  Tax is paid on profits earned in the basis period ending in the tax year in question.   However,…

Our MTD Group have produced Issue 5 of their newsletter giving details of Making Tax Digital (MTD) as it continues.   So if you are unsure of what to do next, our newsletter has information and advice how to proceed.  Don’t delay however as penalties will be introduced if submission deadlines are missed.   Making…

As HMRC’s ambition to become one of the most digitally advanced tax administrations in the world continues so the way the tax system works to become more effective, more efficient and easier for taxpayers to get their tax right the next steps have been issued by HMRC.   Currently VAT-registered businesses with a taxable turnover…