Firm News

UPDATED - 12th July 2018 -

.... Don't miss out on the discounts we have negotiated!

We are currently writing to all our VAT registered clients who will be affected when this comes into force in April 2019.  From this point onwards, you won’t be able to file your VAT return unless you have an approved cloud based software package.

On your behalf we have negotiated some discounts from many of the main software providers, including Sage, Xero, Quickbooks and Freeagent.

If you already keep your accounting records on an online software package then these changes should not be a problem for you, however, do speak to us and see whether you can benefit from the discounts we have negotiated.

If you use accountancy software but it is not an online version then you may need to upgrade.  You may, for example, be using an older version of Sage.  Again, please speak to us before you do upgrade to see whether we can save you money on your monthly subscription.

If you keep your records manually or on spreadsheets then you may need to purchase software which will allow you to submit your VAT returns; again please speak to us about discounts.  Alternatively, if you just don’t want the hassle, we can provide you with a quarterly bookkeeping and VAT submission service.  Please get in touch with us for a free consultation to to discuss the best solution for you.

Whilst some cost will be inevitable, we would urge you to consider the cost as an investment in your business and, with the right help, a tool to help you run more efficiently and effectively.

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UPDATED - 14th July 2017 -

…. And breathe out!

We now have dates for Making Tax Digital and, you may be pleased to hear, it is no longer scheduled to start in April 2018.  Instead, businesses with turnover above the Vat threshold (£85,000) will be required to keep digital records for Vat purposes only from 2019.  The remainder of businesses, including rental, sole trade and partnerships that are below the VAT threshold, and limited companies, will not need to make quarterly returns until 2020.

We will be contacting all of our clients who will be affected by the changes, particularly those who need to be on the ball by 2019, in order to establish the best solutions for your particular business that will get you ready for keeping the digital records that HMRC require.  Between us we will ensure that each client has a workable solution that meets their particular needs in order to ensure a smooth transition into this new phase of HMRC reporting.

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6th April 2017 -

You may have seen in the media that the government is moving towards a fully digital tax system by 2020. HMRC will soon require businesses and landlords to file quarterly accounts electronically using recognised accounting software.

It is now time to ensure that your business is ready to deal with the challenges that this will present.

We do not propose to explain the changes in depth in this letter, but do want you to know that we will be completely prepared to deal with Making Tax Digital (MTD) and assist you throughout the process.

Firstly, if you are a self-employed business owner or a landlord and your turnover is below £10,000 a year, then you should not need to worry, as under the current proposals you will not need to make returns under the scheme.

For those businesses with turnover above this limit, entry into the MTD system will be staggered so that businesses will be introduced gradually over a three year period. Current Government proposals are as follows

• April 2018 for sole traders, partnerships and landlords with turnover in excess of the VAT threshold (currently £85,000).
• April 2019 for sole traders, partnerships and landlords with turnover below the VAT threshold.
• April 2020 for companies paying Corporation Tax.

The accounting industry is putting pressure on the government to raise these thresholds and extend these deadlines so we will keep you informed of any changes as they arise.

HMRC is still reviewing exactly how this will work in practice, if you do have any questions at this stage, please let us know.

You do not need to do anything at present, we just want you to be aware that this is on the horizon and we will let you know what you need to do in good time.

For more information just give us at Bright Brown a call today on 01983 523361.