Analysis of Internal Systems
ASSOCIATION OF CERTIFIED DIGITAL ACCOUNTANTS (ACDA) analyse that some businesses investing in the right software and will be in the best position once they have got their heads around how things need to work. ACDA course provides training for various accounting software which compatible to MTD like Sage, QuickBooks, SAP, SAPA, SAGE Compliance, Excel, Xero and Sage One. The range of services that firms will be able to offer off the back of new technology will be the key to a successful future. Those who will do well will be those who are on the ball and do the whole thing for the customer.
ACDA provides a unique chance for accountants in relation to MTD to extend their advisory role for continuous tax and business planning throughout the year as opposed to the annual submission to HMRC. The government’s new digital tax accounts bring together each taxpayer’s details in one place, like an online bank account, so taxpayers can view their tax affairs in real-time, update their information, register for news services, see at a glance how their tax is calculated and more. This real-time data is going to be helpful for planning purposes, and the introduction of these digital tax accounts is a real opportunity to change how everyone works. It’s an exciting time to be an accountant, and future-facing professionals who hold the forthcoming changes will gain ground in this new, technology-driven picture.
ACDA qualifications are internationally recognised, meeting the needs of employers, government and learners, both now and in the future for the purpose of the digitisation of accounts. ACDA qualifications equip learners with real work scenarios for all accounting practices including digital accountancy & the MTD.
MTD will change the administration of the UK tax system. MTD will involve individuals and businesses using their personalised digital tax account or commercial software to report their taxes digitally to HMRC more often than once a year.
Analysis of the Internal System
The MTD/HMRC will join its internal systems so creating one account for each taxpayer for all their different taxes. Via a 'digital account' taxpayers will be able to view all their payments and offset overpayments in one tax against underpayments in others.
The system will impose new quarterly filing and possible payment obligations. It is understood that the first phase of MTD will affect small businesses and landlords with the second phase affecting VAT.
A new late filing and payment penalty system will eventually apply to quarterly returns and annual declarations. HMRC claims that the annual tax return will be no more, but businesses will still need to prepare year-end accounts filing a year-end declaration, instead of a self-assessment return and or Corporation Tax return. For the self-employed, it is assumed that HMRC might attempt to pre-populate the year-end declaration with data submitted in the quarterly return figures. This is unlikely just yet, and so as if already the case with VAT, a business will still need to reconcile their quarterly returns to their year-end accounts and so all must reconcile to the end of year declaration.
MTD for Businesses
ACDA suggests, if you are VAT registered, then you need to start planning for this change as you will have to start filing with MTD-compatible software by April 2019. This means that you will have to keep digital records in a format suitable for HMRC to ensure that you comply with the requirements.
Even if you are not VAT registered you need to start thinking about how the change is going to affect you. We would strongly suggest that you think about managing the change from your existing record keeping to a digital solution that will leave you compliant with the new legislation. ACDA is specialized accountancy body and here to assist and train in all matter related to MTD and providing solution through many software compatible with cloud technology, the software include Sage, QuickBooks, SAP, SAPA, SAGE Compliance, Excel, Xero and Sage One.
- •The Digital Accountant
- •UK is Transforming into Digital Accounting
- •MTD Demands Accountants in Trusted Advisory Role
- •All about Preparation of MTD
- •Readiness for Making Tax Digital
- •Analysis of Internal Systems
- •MTD’s Bridging Softwares and Their usage
- •Dissemination of MTD
- •Encouraging Economic Effects of MTD on UK’s Small Businesses
- •Get Ready for Making Tax Digital
- •MTD - Making Tax Digital is on
- •MTD: It’s Time of Action for Accountants and Bookkeepers
- •Preparation of Accountants and Clients for MTD