We’ve got a Making Tax Digital standard because at Unicorn, we believe in using technology to enhance your e-commerce business, reduce your workload, and ensure you are ready for all accounting changes. We use our expertise, so you’ll never be caught out by compliance changes or be forced to switch systems in a hurry.
The Making Tax Digital (MTD) initiative has been in force since April 2022and is just the beginning of a global changeover to digital tax filing. Getting on board early will reduce the pressures further down the line and have you ready when other tax areas get the same treatment.
Making Tax Digital standard for clients
As e-commerce specialists, we believe Xero is fundamentally the right software for you. The Xero standard package is included for all our clients, and is, of course, fully compatible with the MTD initiative. In fact, Xero had a huge role in the creation and management of the Making Tax Digital scheme.
The Xero team are always quick to react to any new compliance legislation, so you can breathe easy knowing that your accounting software will always be up to date and HMRC recognised.
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If you are currently using Quickbooks, Sage or any other accounting software, our conversion service is the quick and easy way to switch over to Xero without having to start afresh. For more information on this service, get in contact today.
MTD Initiative
MTD has been rolled out for VAT, but HMRC plans to include other areas such as Corporation Tax and Income Tax in the future. Making Tax Digital compliance may be optional at your current turnover but ensuring you are providing all the relevant information through an approved app will avoid fines and added hassle as your business scales.
No half measures
Our Making Tax Digital standard couldn’t be simpler. We don’t believe in only opting in when you’re forced to. We will be using MTD for all our clients, regardless of whether they are above or below the threshold for mandatory use. By implementing this change across the board, we are ensuring that all our clients have the correct systems in place, helping them to future-proof their e-commerce business as they develop and grow. Implementing the change early also ensures a stress-free process and eases pressure when measures become necessary.
If you run a VAT-registered business with a taxable turnover above the £85,000 threshold you are required to submit your digital business records via MTD-compatible software such as Xero. Even if you do not meet this threshold, it could be beneficial to go digital in preparation for future announcements and developments.
Utilising these systems now will make rolling out future MTD changes simpler and by opting in now there will be less admin time as the business grows. Why not future-proof your business from both MTD in its current form and from potential legislation requirements to implement in the future? As all our clients have Xero up and running, it is simple for everyone to use the technology they already have at their fingertips and make the switch to digital VAT returns.
VAT help
Being on the right VAT scheme can make or break a business in its infancy. While we’re setting you up for MTD, we’ll also be able to provide guidance if you need to choose the right VAT scheme for your business.
VAT needn’t be a quarterly headache that you put off until the last minute. Once you are on the right scheme and using our Making Tax Digital standard you will soon find your quarterly accounting time to be minimal and more efficient.
What’s next?
If you are already with us, you know your VAT is being dealt with in the best (and most efficient) way possible. If you are running an e-commerce business and feel it’s time to get in touch, please do so. As Xero Gold partners we can switch your existing accounting system over to Xero, provide you with a comprehensive app advisory service to maximise your productivity and ensure that your Making Tax Digital standard is ready for a digital future.
The best time to start is now.
hello@unicornaccounting.co.uk
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