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Cloud accounting is the practice of using an accounting system that’s accessed through the internet. One major advantage over Desktop systems is that cloud technology enables users to access their records from anywhere and on any device that has an internet connection. Another big advantage is cloud accounting also supports simultaneous multiple users giving far more flexibility and improved collaboration between business owners, their book-keepers and their accountants.

The potential of having access to up to date, meaningful data and reports, everyone involved can be more pro-active much earlier than before.  ComputAccounting are Platinum QuickBooks Advisors, and are able to set up and operate “The Worlds’ Best Selling Accounting Software for Small Businesses” in a way which can dramatically benefit any type of business.

Making Tax Digital for VAT requires VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT Returns using software.  It is increasingly common for business records and accounts to be kept digitally, in a software program on a computer or tablet, or in a smartphone application, or maintained through such a device and stored using a cloud-based application.

The difference under Making Tax Digital is that the software which businesses use must be capable of keeping and maintaining the records specified in the regulations, preparing their VAT Returns using the information maintained in those digital records & communicating with HMRC digitally.

If your digital records are up to date, software will be able to collate and prepare your return for you.  The same principle of Making Tax Digital for VAT is carried to across to the eventual introduction of Making Tax Digital for income tax – keeping of digital records and filing quarterly updates through Making Tax Digital compatible software rather than just one self-assessment tax return each year.

Making Tax Digital for VAT requires VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT Returns Since 2019, the vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) have been mandated to keep digital VAT records and send returns using Making Tax Digital (Making Tax Digital) – compatible software.

1st April 2021 marks the end of the soft-landing period for businesses without full digital links to submit their returns. From 1st April 2021, there must be full digital links and therefore no manual manipulation of spreadsheets, or copy and paste involved with submission of VAT returns.

From April 2022 these requirements will apply to all VAT-registered businesses. This will apply to VAT registered to businesses who are under the VAT turnover threshold of £85,000 and therefore previously did not have to registered for Making Tax Digital for VAT.  Making Tax Digital for Income Tax Self-Assessment (ITSA) will apply from April 2023 for unincorporated businesses and landlords with total business or property income above £10,000 per year. Most businesses will have 2 years to prepare and test the service voluntarily prior to its introduction.