TimelyFit: Making your tax digital ⚡️
We get it; tax isn’t exactly the most glamorous topic to talk about. But, every business needs to take it into account! See what we did there? Join us and the lovely Ria-Jaine Lincoln, the brains behind The Beauty Accountant, to chat about the ins and outs of making your tax digital. ⚡️
Ria-Jaine is an award winning accountant specialising in beauty businesses, and has been listed as one of the top 50 Women in Accounting across the globe. Having worked in the beauty industry as a qualified lash and nail technician, she now has over 10 years of accountancy experience, helping salon owners with business, cash flow management, financial targets, compliance and taxation duties. What a star 🤩
Why you need to make your tax digital
It’s one of those things that you’d rather avoid, but making your tax digital is super important if your business is above the VAT threshold, which is currently £85,000 turnover. As an HMRC requirement, you’ll need to have digital records of all your business transactions, and prepare and submit your VAT return automatically using compatible software.
What this means for you
As a part of the government’s MTD initiative, your accounting records must be kept in a digital format, and you need to use MTD compliant software to submit VAT returns to HMRC (there will be penalties for businesses that don’t).
“Because your sales data will need to be captured in digital format, it’s important to have the right system in place.”
This sales data includes the date of supply, value of supply, and the VAT rate that was charged. You’ll need to use a system that links with either bridging software or MTD compliant software, e.g. Quickbooks.
Plus, you need to store the following information digitally; the name of the taxable person, the address of the main place of business, VAT registration number, any VAT accounting schemes used.
The benefits of going digital
There are lots of benefits! We’re talking real time information, time savings, planning for tax payments, quicker tax return submission, and accounts production to help avoid any late submission or payment charges.
“If you have a solid booking system, digital bookkeeping software such as Quickbooks and a receipt capture tool are good additions to help bring everything together.”
By then, you’ll be well prepared for MTD 😎
Watch the LIVE to learn more!
Keen to learn more about your tax? Ria-Jaine offers workshops and subscriptions via her website: riajaineaccounts.co.uk⚡️