Alex Powell, Associate Executive at Bevan Buckland LLP
Making Tax Digital for VAT becomes mandatory for all VAT registered businesses from 1 April 2022.
Businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using compatible software, since April 2019.
From 1 April 2022, all VAT registered businesses must file digitally through Making Tax Digital from 1 April 2022, regardless of turnover.
Alex Powell, Executive at Bevan Buckland LLP, says “We can sign you up to MTD, although you will be responsible for meeting your VAT obligations. Those who do not join Making Tax Digital for VAT may be charged a penalty for failure to do so. If your business has not signed up to MTD compatible bookkeeping software, then please talk to us urgently about how we can help your business comply with the new law.”
Alex added: “The Government has launched a new support programme designed to help small businesses adopt digital technologies so they can grow. Applications for the ‘help to grow: digital’ scheme opened on 20 January 2022, allowing eligible businesses to receive discounts of up to £5,000 off the retail price of approved digital accounting and customer relations management software.”
The Help to Grow: Digital scheme is delivered through a new online platform
To qualify for the financial discount through Help to Grow: Digital, businesses can be from any business sector, but must meet all 4 of the following criteria:
- be a business based in the United Kingdom registered with Companies House or be a registered society on the Financial Conduct Authorities Mutuals Register
- employ between 5 and 249 people
- have been actively trading for over 12 months, and have an incorporation date of at least 365 days prior to application
- be purchasing the approved software for the first time
Eligible businesses will receive one financial discount towards the purchase of one approved software product up to a maximum of £5,000 (not including VAT) in Customer Relationship Management and Digital Accounting software product categories. Additional software product categories will be available with a discount soon, including e-Commerce software. The financial discount covers 12 months’ worth of approved software product core costs, exclusive of VAT.
The approved technology suppliers on the Help to Grow: Digital online platform for Wave 1 are:
Customer Relationship Management (CRM) software
- Capsule CRM
- Livepoint Software Solutions Ltd
- Gold-Vision CRM
- Deskpro Ltd
Digital Accounting software
- Intuit Ltd
Customer Relationship Management (CRM) software allows businesses to store their customer contact and order data all in one secure, central location. CRM can simplify business processes and enable businesses to be more profitable and efficient. Businesses that use CRM systems to manage their sales and customers see on average an 18% boost to their productivity.
Digital Accounting software makes essential business finance tasks like raising invoices, tracking spending and sharing information easier to manage. Businesses that adopt Digital Accounting software see on average an 11.8% increase in employee sales over 3 years.
To find out how your business can get Help to Grow, visit the GOV.UK Help to Grow page.
Bevan Buckland LLP is the largest independent accountancy practice in Wales providing practical support and strategic accounting and tax advice for small to medium-sized businesses. Headquartered in Swansea, the firm has offices in Cowbridge, Carmarthen, Pembroke, Haverfordwest and St David’s.