Archive for the ‘ACCOUNTING & CLOUD INTERGRATION’ Category

MTD – The biggest change in tax administration for 20 years – are you ready?

Monday, October 15th, 2018

In 2015 the Government launched its plan to improve the administration of tax in the UK. This plan, called ‘Making Tax or Digital’ or ‘MTD’ will change the way we file tax returns and how we record and store relevant data to be able to calculate our tax liabilities.

Our FAQs below will help to explain what is happening and how it will affect you.

What is Making Tax Digital?

MTD is HMRC’s plan for moving the calculation and collection of taxes to an online or ‘digital’ format. This process will have to take place using MTD compatible software – More on which later. HMRC’s aim is to make the collection of tax more efficient and to reduce the tax calculation errors which cost the Treasury in excess of £9bn a year. 

Who does it affect?

From 1 April 2019 MTD will be mandatory for VAT registered businesses who have a taxable turnover above £85,000, which is the current VAT threshold.

Is MTD only applicable to VAT registered businesses?

No. In the future, MTD will also become mandatory for the self-employed who are not VAT registered, property landlords and companies paying corporation tax who are not included in the first phase. The implementation dates for other businesses have not been confirmed but is likely to be from 2020 or soon after.

Will MTD for VAT change the way I need to record and submit VAT data?

No. The deadlines for submitting and paying your VAT will remain the same and the VAT related information you collect and record will not be changing. 

What is ‘MTD Compatible Software’?

This is accounting software which enables the exchange of accounting and tax data between your system and HMRC’s MTD system. This software includes online accounts packages such as Xero. Excel spreadsheets can be used providing these link to appropriate bridging software to enable you to send and receive data to HMRC.

How can Kingscott Dix help me with MTD?

We can talk you through the changes MTD will bring and how these will affect you.

Kingscott Dix can review your existing accounting systems and advise on whether these will be MTD compatible.  Where required, we can help you to transfer your accounting records onto a MTD/cloud accounting package. For more information about how we can help with your accounts software, see our Accounting and Cloud Integration page.

For more MTD details contact Kingscott Dix at:

Gloucester Office
T: 01452 520 251

Cheltenham Office
T: 01242 679 099

Alice Lowe from Blackhouse Farm Limited

Thursday, June 21st, 2018

KD started us on Xero last year. As a very non–tech book keeper I was daunted at the start, but found it very straight forward to use.

I had excellent back up from Paul Murphy and whenever I had tech questions they were answered quickly and in a language I could understand.

Xero now saves me considerable time especially with the input of invoices, and also at the end of accounting year.

Helen & Mark, Aitch and Aitch Bee Events

Thursday, June 21st, 2018

“From the first discussion about the benefits of the Xero package, Kingscott Dix made the set up and transition from our existing book keeping system very easy. We have found it user friendly and any queries that we had were quickly dealt with. We have to say it has revolutionised our book keeping saving us time and giving so much more key business information.”

R Ledger, A To B Contracting Ltd

Monday, May 21st, 2018

“Kingscott Dix have been incredibly helpful since I decided to go self-employed. They have made everything very simple to understand and helped me make informed choices about how to effectively manage the financial side of my company. They are very accessible when I have questions and explain things in plain English!”

Cliff Thrussell – Optimum Oils Limited

Monday, May 21st, 2018

……’’we turned to Kingscott Dix 5 years ago as we weren’t happy with our existing accountants, we carried out a cost and value analysis on 6 companies and Kingscott Dix came out on top. We definitely haven’t been disappointed. They have undertaken not only accounts preparation and tax work, but also plenty of project work including the acquisition of a new subsidiary company. They provide an excellent service and are approachable and innovative and above all they offer real value’’