Embracing Making Tax Digital

With the arrival of Making Tax Digital (MTD), it’s important to make sure your tax is completed online digitally. There are many different digital packages that can achieve this, but here at Chadwick & Company we think we’ve found the perfect solution in Xero’s digital tax software. Senior Accountant, Jon Hart explains our approach to MTD and how we can help you.

MTD approved software

From 1 April 2019, many businesses will have to change the way they file their tax returns. The implementation of MTD is designed to make the taxation process simpler and smoother. In order to file tax returns and keep track of invoicing, payments etc, accountancy firms and their clients will need to have MTD compatible software. If you don’t already use certain software to maintain tax records, HMRC has compiled a list of MTD-approved software suppliers for VAT, for example Xero, QuickBooks and Sage. The VAT system is the same. It’s the way the records are submitted that is changing.

It is important to get the right software for your needs – for example, if you prefer using traditional spreadsheets, you’ll need to download bridging software to enable VAT filing. It is also worth noting that some bookkeeping software will not handle complex VAT issues, such as partial exemption.

Why we choose Xero

We support a range of digital accounting software, but have a preference for Xero. It is a comprehensive package our clients find easy to use and is specifically designed to make MTD work effectively.

For companies keeping track of complex accounting procedures, it enables this to be carried out safely and methodically. Cloud storage is an added safety net, eradicating the threat of missing accounts. Xero includes an array of benefits and its flexibility enables us to run our practice the way we choose and it suits all sizes of customer.

Save valuable time

The positives of digitising tax will enable businesses to become more efficient – with easy data flow, you’ll be able to use your valuable time elsewhere. Time-consuming paperwork will be a thing of the past, as workflow progress reports and invoicing is carried out digitally.

This integrated software solution is anchored by Xero HQ, the central hub for all our clients’ and practice data, activities and reporting. Seamless integration allows us to connect everything using Xero HQ, plus further Xero products and a suite of connected apps.

Our clients can rest assured that Xero also offers great backup and support for accountants and financial advisors, ensuring their details are always up to date and accessible.

Chadwick & Co is a Xero Gold Champion Partner. Senior Accountant, Jon Hart, is one of our twelve Xero qualified trainers. So, whatever the size of your business, if you seek advice on any aspect of the introduction of MTD why not email us or call Jon on 0161 370 9600.