The Making Tax Digital rules first came into force in 2019. Prior to that, it was estimated that HMRC was losing up to £4bn per year as a result of simple errors on tax returns. When VAT taxpayers filled out their returns it was common for mistakes to occur, often unintentionally, because spreadsheets weren’t always sophisticated enough to highlight when something didn’t quite add up, and filling out a pen and paper tax return was even more problematic…
- Topic:
- Finance
A wide variety of health and social care organisations need to comply with the Making Tax Digital reforms. The reforms currently only impact organisations that pay VAT over the threshold level of £85,000 – and if this applies to your care organisation, then it may well affect you.
You now have to submit all returns digitally and need to do it through software that links up seamlessly with HMRC’s systems to minimise the risk of mistakes. Here is more information about the Making Tax Digital reforms and how health and social care organisations can ensure compliance.
What is Making Tax Digital?
As of now, Making Tax Digital is open to any health and social care company and any organisation that is not in VAT arrears. Making Tax Digital (MTD) is a system from HMRC that has transformed the UK tax system, making it fully automated, digital and online based. Starting with businesses above the £85,000 threshold, there is now a requirement to digitally record and submit tax returns online, and to ensure that the digital journey of data from accounting and invoicing systems used in the process of filing your return, remains uninterrupted.
- Topic:
- Finance
With several regulatory changes in the last few years, finance leaders would be forgiven for thinking that regulation is a curse. The arrival of HMRC’s Making Tax Digital scheme last year led to a number of significant changes in the way that VAT taxpayers had to file their returns, for example. And there are still a number of regulations due to come into effect in the coming months and years, meaning that the need for change isn’t going to go away. This article will explain how you can keep yourself ahead of changes to the regulatory system.
- Topic:
- Finance
It’s estimated that there are over 150,000 sports clubs alone in Britain, and plenty more when social clubs are included. Many of them have long-running heritages in their local areas. However, while there’s a real community aspect to sports and social clubs, they still need to be properly managed – especially when it comes to checking that the finances are all in order and fully compliant.
- Topic:
- Finance
With the implementation of the Making Tax Digital (MTD) reforms just around the corner on the calendars of many finance leaders, finance software is experiencing a renewed focus. Under the new rules, companies that earn over £85,000 and therefore pay VAT will now be required to use software packages with API functions for efficient, mistake-free data sharing on tax returns – so new software is a must for many. However, there are other benefits to implementing a system like this – including collaboration, data sharing and more.
The current status
In the sports and leisure industry, preferred bookkeeping and other financial record-keeping practices are often determined in large part by the size and nature of the business. For a chain of leisure clubs, it’s highly likely that a computerised finance system of some sort will already be in place, but for a smaller business or a self-employed personal trainer or coach, it could be that pen and paper is the record-keeping method of choice.
- Topic:
- Finance
Paying taxes is one of those inevitable parts of doing business – and for businesses that earn over £85,000 per year, there is an additional burden in the form of value-added tax (or VAT). With the introduction of Her Majesty’s Revenue and Customs’ (HMRC’s) Making Tax Digital (MTD) scheme, there are now extra burdens. Even those VAT-paying sports and social clubs that aren’t profit-making will be affected, as MTD covers all those over the threshold. With the deadline just a few weeks away, some organisations are still panicking about how to get compliant in time. But what would happen if things changed and the scheme was pushed back?
- Topic:
- Finance
Filling out VAT returns can be a headache for a finance leader. Not only is it the sort of task that regularly saps employee’s time, but it’s also a complex bureaucratic process and one that could lead to compliance failures when bearing Making Tax Digital (MTD) in mind. However, there are ways that you can make the most of your VAT requirements for your firm, such as implementing an effective staff expenses system for maximum tax efficiency.
- Topic:
- Finance
As all finance leaders will be well aware, the deadline for switching over to the new Making Tax Digital (MTD) regime for those who pay VAT is now just a few weeks away. However, one recent study from YouGov suggests that more than 30% of affected firms could still be unprepared for the move – which, in a twist of bad timing, happens just a handful of days after the supposed date of Brexit. Many parts of a firm’s finance function will need to change – but just how will your expense system be affected? Here’s how your expense management tool will need to adapt.
- Topic:
- Finance
Staying on top of your firm’s finances is essential no matter what industry you’re in. However, for some industries, the requirement to stay in control of your finances is even more pronounced – and the construction industry is one of them. Firms in this sector face a number of unusual and even unique challenges: from the contractor-heavy payroll frequently seen in the sector to wider changes in the regulatory and industry landscapes, there are a lot of reasons to stay organised.
- Topic:
- Construction
