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For those of you who are still keeping manual records and refusing to buy an accounting software package to record your bookkeeping transactions, be warned, your days are numbered. Like it or not, digital record keeping is coming and it's worth planning for this now.
With effect from 1 April 2019, all VAT registered business with turnover above the VAT registration threshold (currently £85k) will be required to:
Digital Record Keeping
Keeping digital records doesn’t mean that you have to scan every receipt and invoice. It does mean that you will need to make a digital record of every transaction you make, for instance, by entering the details into an accounts software package.
The quarterly returns must be made using HMRC compatible software. Compatible software will be able to:
Springfords are up to speed with the many on-line cloud accounting packages on the market, such as Xero, Quickbooks, SAGE One, and Freeagent, all of whom are already in discussions with HMRC to ensure their packages will be compatible. Though a word of caution; as these packages vary in functionality and price, just be sure to check with us first what’s best for you.
The benefit of these cloud accounting packages is that they enable the VAT return to be generated automatically from the digital records and also offer the ability to import your bank statements at the click of a button, making life much simpler and record keeping much faster. So they're well worth considering.
Plus, keep in mind that there are ways to make your record keeping easier, particularly if you opt for a cloud based package:
If you need any further advice on the proposed changes, please don’t hesitate to contact firstname.lastname@example.org.