Welcome Making Tax Digital Chris Bailey CEO- Biography Chris - - PowerPoint PPT Presentation

Making Tax Digital

Welcome

Making Tax Digital Chris Bailey CEO- Biography Chris Bailey is a Chartered Accountant who has been involved in the Accountancy industry for more than 30 years. Bailey Group Chartered Accountants was set up by Chris in 2004 and has grown to become one of the largest independent accountancy practices in the North East.

Making Tax Digital

Our offices

Bailey Group Chartered Accountants are an independent group of accountants with 7 practices in the North and 1 in St Albans

Making Tax Digital

What is Making Tax Digital?

• From April 2019 HMRC will require all businesses over the VAT threshold

(£85,000) to submit their returns digitally

• This is the first step in HMRC’s plan to digitise the entire tax system
• If you currently record your VAT on paper you will need to start recording it digitally
• It will no longer be possible to submit VAT returns using the Government Gateway

portal

Key facts

Making Tax Digital

Making Tax Digital timeline

Public MTD pilot for Income Tax launched

March 2018

Private MTD pilot for VAT launched

April 2018

Public VAT pilot launched

Autumn 2018

Making Tax Digital for VAT begins

April 2019

Making Tax Digital

Why is Making Tax Digital happening?

• HMRC wants to make the UK tax system the most efficient in the world
• Currently they believe there is a short fall of £9 billion in unpaid tax
• They believe that introducing a digitised system will make it more

effective, more efficient and easier for taxpayers to get it right

• VAT is only the first stop, HMRC will be introducing Making Tax Digital

for Income Tax and Corporation Tax in the future

Making Tax Digital

Why is Making Tax Digital happening?

Making Tax Digital

• In order to submit your VAT returns digitally, you must record your

transactions digitally

• The digital record must include your business name, primary

business, VAT reg number and the VAT scheme you are using

• The software you use must also be compatible with HMRC

What is a digital record?

Making Tax Digital

• HMRC is working with more than 150 software suppliers
• Software suppliers include; IRIS, Sage, QuickBooks and Xero
• If you currently use us to submit your VAT return you will not have

to do anything

• You can find a list of approved software in the Making Tax Digital

guide

What software is compatible?

Making Tax Digital

• Currently over half of businesses with turnover above the VAT

threshold use software to submit and record their VAT

• If we do your VAT return and you currently record your VAT using

paper records you will need to start recording them digitally

• If you are already recording your VAT digitally and/or using

software all you will have to do is pass that information on to us or check that your software is compatible

How will this affect me?

Making Tax Digital

• The Government Gateway will be closed for VAT returns from

1 April 2019

• You will need to use software that communicates digitally with

HMRC’s platform and not by manually entering the VAT return figures on the portal

• There will be a ‘soft-landing’ period throughout 2019 where you

can use ‘copy and paste’ but from 2020 onwards the software you use must be fully compatible

How will this affect me?

Making Tax Digital

Making Tax Digital

• You can get rid of your non digital records
• Free up time, you can do MTD on the go, anywhere,

any time

• KashFlow is a duel user so you can see it and so can

we, meaning we can support you every step of the way

• You will save approximately 27.5 days a year by

switching to digital technology

Positives

Making Tax Digital

• HMRC will be introducing a penalty system in 2020 for those who

do not comply with MTD

• Every time you submit an MTD report late you will gather points
• Once a certain points threshold is reached, a financial penalty will

be applied

• For VAT the points threshold is expected to be 4 points which is

the equivalent of a full years worth of returns

What will happen if I don’t comply with MTD?

Making Tax Digital

• The Federation of Small Businesses estimate that the total cost of

MTD will be £2,770 per year per business

• This includes software costs as well as a rise in accountancy fees
• MTD will require more staff per client as there is a higher level of

compliance

• We can work with you to find a solution that works best for you,

either moving you to a Direct Debit payment plan or helping you move onto MTD compatible software

How will MTD affect my fees?

Making Tax Digital

Our solution

Making Tax Digital XERO QuickBooks Sage KashFlow

MTD compatible Bank Feed Reporting Multi-currency

X

CIS

X

Invoicing

Available software

Making Tax Digital

Virtual cabinet

Client portal

24/7 access to your documents via our website

Digital signatures

Sign documents digitally, helping to speed up the approval process

Better security

GDPR compliant

Making Tax Digital

What is Cloud accounting?

Accounting software that is hosted on remote

servers

Flexible

Frees us up from having to install software on every machine

Security

As secure as traditional accounting software, no trace

• f financial data on company computers

Making Tax Digital

• IRIS Snap provides accountants with a mobile app

service to take photos of there business record and receipts

• The photos will then be automatically uploaded to

KashFlow where you can manage and view your records on the go

What is IRIS Snap?

Making Tax Digital

• We are now a Cloud Accountancy firm and will be using IRIS

KashFlow to efficiently manage bookkeeping for all of our clients

• KashFlow can be used by you as well – if you want to manage

your own bookkeeping

• We will also be providing you with IRIS Snap – a mobile app that

allows you to take pictures of receipts and send them directly to us

Our solution

Making Tax Digital

Our solution

Our mobile MTD solution

Making Tax Digital

• We can visit your workplace or office with our personalised mobile

MTD system, where we will scan all your paper documents and then upload them straight to the cloud

• This means that you won’t have to worry about digitising your VAT

records yourself

• The whole process will take under an hour

Our solution

Making Tax Digital

• We also have a Bailey Group App where you can

access your client account and speak to us direct

Our solution

Making Tax Digital

Where can I find more information?

To find out more information on MTD, visit our website at www.baileygroup.co.uk and visit the resources section of our website.

Making Tax Digital

Any questions?