Making Tax Digital – what every beauty business needs to know

We get it – navigating the new Making Tax Digital (MTD) guidelines can be time consuming. 

At Timely, we’ve put together the ultimate guide to the MTD scheme, so you can nail your tax obligations and get back to what you want to be doing (we’re guessing tax administration isn’t top of the list).

What is Making Tax Digital and what does it mean for my business? 

The MTD programme means that from April 1, 2019, UK businesses earning more than £85,000 will need to submit digital tax returns. All VAT tax returns need to be submitted digitally via the HMRC gateway.

Here are the key dates you’ll want to put in your calendar:

How do I get started?

How do I keep digital records? 

Well, it depends on your existing business processes. Have you been manually managing your tax via spreadsheets, or do you already have an accounting software? 

Option one: spreadsheet bridging software

If you don’t use a lot of tech in your business, then spreadsheet bridging software might be the best option for you.

This software extracts the contents of a spreadsheet and uploads it to HMRC. Both Xero and Quickbooks offer bridging software options, which can import data from spreadsheets into the Quickbooks or Xero interface and then submit a VAT return to the HMRC.

If you’re not ready to say sayonara to your spreadsheets, then consider a bridging solution.

Option two: accounting software

Shifting to accounting software like Xero or QuickBooks is a good option if you want to keep your tax administration as streamlined as possible.

Organisations that already use an accounting software should ensure that the supplier is MTD compliant. The HMRC has put together a handy list of MTD friendly software. See if your existing software solution made the cut.

HMRC-recognised software should:

Have you got the accounting software but want to streamline your other business processes? MTD is the perfect opportunity to make your whole business digital, from booking client appointments right through to bookkeeping.

If you haven’t already, check out Timely’s Xero or Quickbooks integrations. Manage your sales, appointments and tax obligations in one central, cloud-based platform. Timely gives you all the time saving tools your business needs so you can do more of what you love.

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