Xero MTD ready

Getting ready for Making Tax Digital with Xero

Making Tax Digital is now here, but there’s no need to panic.

We know that there are still business owners who carry around a bag full of receipts but switching to online accounting with Premier Tax Solutions is simple and is guaranteed to make your business easy to manage.

All of our VAT registered clients use Xero online software. This means they have nothing to worry about now Making Tax Digital has come into force on 1st April – everything is done for you.

Xero takes care of the new quarterly tax reporting rules. Your VAT figures are relayed automatically to HMRC, you don’t have to lift a finger.

Premier Tax Solutions are Xero Gold partners and we are ready to support any businesses who have still not made the move to Cloud accounting.

We can even offer support to businesses looking to go digital, working alongside the company’s traditional account, if this suits your business needs.

Making Tax Digital means VAT-registered businesses with taxable turnover above the VAT threshold of £85,000 must use the service to keep records digitally and have compatible software to submit VAT returns.

But this could be good for your business as analysis from Xero suggests not using software means many small businesses lose out on growth in their early years as owners grapple to understand regulation and struggle to keep adequate financial records.

Xero say that nearly 90 per cent – or 4.9million – of small business owners admit feeling ‘overwhelmed’ by regulation when starting up. They also found two thirds of small firms admitted to having less than one day’s corporate financial experience or business education prior to the launch of their business.

Gary Turner, co-founder of Xero, said: “Small business owners feel overwhelmed by paperwork and rules they don’t have time to get to grips with. Many may see Make Tax Digital as another thorn in their side, but our research also shows that once business owners get on top of their finances, these businesses often prosper more quickly.”

Research from Xero shows that more than three quarters of small business owners had never submitted a tax return before starting up. Furthermore, two thirds admit they’ve been hit with tax return fines – with the most common fine being between £300 and £400.

Around 50,000 SMEs fail each year due to cash flow issues.

According to more than a quarter of SMEs, using digital accounting has saved them time.

Meanwhile, 22 per cent say it has saved them money and has encouraged entrepreneurism, helping trigger future start-ups.

To find out more about how we can help, call us on 01782 479699 or email hello@premiertaxsolutions.co.uk