Making Tax Digital (MTD) and Xero
1st November 2016
It was recently ‘Making Tax Digital’ week at AccountingWEB and it has led to some interesting discussions about how this will impact clients in the future.
Unfortunately for some, Excel may no longer be sufficient, when it comes to bookkeeping. But fear not, as a Xero Certified Advisor I’m keen on showing clients how this digital cloud bookkeeping is not as scary as it sounds.
Expected to be introduced from April 2018, those businesses affected will be expected to submit quarterly returns to HMRC declaring their current estimated tax position. HMRC are developing a free platform to record and submit your information, but until this is released I am uncertain if it will be as good as some of the paid for software packages currently available on the market, such as Xero.
Xero is a cloud based bookkeeping package, which was founded in 2006 and has developed massively since its release, introducing various updates including submitting VAT returns and Real Time Information (RTI) for payroll straight to HMRC. Therefore it should be compatible with the new digital requirements coming into effect.
Xero main benefits are:-
- Automated bank feeds, which download your bank statement lines and with a click of a few buttons you can tell the system what the transaction is for.
- Quotes & Invoicing, which sends out directly fully customisable documents to your customers.
- Real time reporting, such as Payroll, VAT, profit and loss and access anytime, anywhere.
- File storage & sharing, so you can store electronic copies of receipts and invoices – reducing your boxes of paperwork by enabling you to go paperless.
- Xero Touch, is the mobile App version which can be used on the go – most importantly for claiming expenses while you are out and about, saving a copy of your receipt there and then
They don’t stop there – Do you have any special requirements, want to know more about how using Xero could benefit you or would like a free demo with me to see what Xero is about.