Digital records will be compulsory

Posted by / May 23, 2016 -

The government intends to force all businesses, large and small, to keep records electronically. When will this happen and how can we help you to prepare for the changes?

If you keep records manually then you will need to start planning for a change now. It is the governments plan to “make tax digital” for all businesses whether incorporated or not if you have an income of £10,000 or more. This may have serious consequences for many businesses.

In the governments manifesto about the future of tax administration you could be fooled into thinking that “making tax digital” was a vague policy. Well, you would be mistaken as the government is now in full consultation with the software houses and tax industry as a whole.  Although the deadline is 2020 for full implementation there will be a transition period where some businesses will be required to keep all records digitally by  April 2018.

So what will it mean for you?

If your income is over £10,000 and you operate a business (including landlords) you will need to use software in order to keep your records. There is some good news in that the government will provide free applications to help businesses. However, the software is likely to be very basic and it is likely that it will not be sophisticated enough to meet the requirements of all but the very basic businesses. The other issue is that in order to use the software the tax payer may need a basic understanding of double entry book keeping.

Park Lane Accountants is able to help you by assessing your needs and recommending the best software that suits your business. We are able to train you in the use of the software or offer comprehensive book keeping services. Our prices are reasonable and start at £25 per year for a basic cloud based system or £55 per year for a fully functioning system.

Give us a call on 01247 247160 to discuss your requirements.

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