readiness-for-making-max-digital

Readiness for Making Tax Digital

ASSOCIATION OF CERTIFIED DIGITAL ACCOUNTANTS (ACDA) has a long history of working and providing solutions for the digitisation of VAT before the launch of the current MTD scheme. ACDA help in preparing student, professionals and businesses to get ready for Making Tax Digital is one level of the compliance to VAT/HMRC. Sage research says that at the end of 2018 only 10.5% of accountancy practices were ready for Making Tax Digital in contract, as specialist accountancy qualification provider, ACDA has designed and initiated computerised bookkeeping, management accounting, financial accounting and taxation around 10 years ago and started working through Sage, QuickBooks, SAP, SAPA, SAGE Compliance, Excel, Xero and Sage One. Therefore, ACDA qualifications and training programme provides the full experience of a variety of job roles in the accounting sector such as, Bookkeeper, Payroll administrator, Assistant Accountant.   Our programmes have been recognised and appreciated by the industry experts and achieved excellence at all level which is helpful for all the students and businesses transforming into MTD.

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.

ACDA understands that if your business is one that’s not ready for HMRC’s new requirements, it demands to put MTD solution in place. ACDA qualification and training programme can assist you to take the steps that are required for MTD.

Considerations

ACDA considers that businesses that exceed or expect to exceed the VAT registration threshold will need the following:

  • Whether they may be exempt from the requirement to file returns electronically under MTD (charities, local authorities, government departments and overseas businesses will not be exempt from MTD for VAT unless their taxable activities are below the VAT threshold)
  • What records will need to be kept digitally
  • What the digital VAT account should look like
  • How to submit their digital VAT return in line with MTD requirements
  • Whether to submit their digital VAT account to HMRC
  • Penalties for late filing and payment of VAT, and for not keeping digital records or having digital links.
  • It is also worth noting that MTD requirements will be rolled out for all other taxes in 2020.

How to get ready for MTD

From April 1st 2019, MTD for VAT is commenced, many businesses are still uncertain about the requirements and how specifically these requirements will apply to their businesses. Businesses should think about what the 'digital' VAT account should look like. It is important to ensure that all VAT adjustments that are included in VAT returns are correct and that the existing reporting systems extract all the necessary source data. ACDA qualifications have built-in features to undertake, particularly for complex businesses that are required to make many VAT adjustments such as partial exemption calculations, capital goods scheme adjustments, specific blocks on Input VAT recovery etc. ACDA coverage includes help for businesses to consider testing the source data. ACDA qualification/courses include undertaking a data analytics exercise can give some comfort that existing VAT processes and controls are working well and highlight any potential issues.

Services to Clients

ACDA is well aware that many accountants have found changes such as auto-enrolment have led to opportunities to provide more support to clients but the challenge has been incorporating this into their fees. ACDA’s solution include the assessment of how best to work with your clients. You will know from experience which clients are more capable than others. ACDA educate them on the impact of inaccurate submissions and calculations and provide them with extra support and tuition to help pre-empt avoidable mistakes. Making Tax Digital is an opportunity for practice and service growth. ACDA programmes consider how you will package MTD support to existing and new clients and how you will differentiate yourself from your competitors.