MAKING TAX DIGITAL (MTD) – are you ready for it?
Making Tax Digital (MTD) is a new government initiative due to roll out in April 2019 for barristers earning in excess of the current VAT threshold, and in 2020 for those earning below £85,000 per annum. In essence, MTD is a digital tax system that will ultimately bring about an end to self-assessment. The new system will require barristers to maintain digital records using compatible software and file relevant VAT information electronically.
How will MTD affect me?
MTD will require you to make quarterly tax submissions to HMRC, rather than submitting them on an annual basis. This will compel barristers to consider alternatives, the most popular being; taking out a subscription to an accounts package (which can file VAT returns), or look to an accountant to pick up this task. HMRC will also expect you to maintain bookkeeping in an electronic format.
Barristers currently earning over the VAT threshold should take steps now to ensure that they are compliant by April 2019. To delay or fail to have a digital system in place could incur late filing penalties.
For over 20 years, BarTax has delivered a cost effective and hassle-free service to barristers. Our approach has always been ‘VAT submissions led’, as the same information required for VAT returns is then required at the year-end for tax returns.
Our approach to receipt gathering is refreshingly simple, and involves little work for you. We make available to you a FREE App called ‘ReceiptBank’. Barristers simply capture their receipts with the phone camera. It’s as simple as that.
This ‘Snap it – Bin it’ approach ensures that no receipts and tickets are lost. Use it for all your receipts – the only other information we need every quarter is a Payment Summary and Chambers invoices. Nothing could be simpler.
Every quarter, we provide reassuring accounts, and an annual projection of your income. We also file your VAT return figures for you. As soon as your VAT return passes over your year-end, we are in a position to complete your annual accounts and most of your tax return.
The majority of our existing clients do not need to take any action as we already complete their quarterly VAT returns on their behalf as part of our comprehensive service. BarTax is MTD ready, and has the necessary software and systems in place to ensure a smooth transition and full compliance for our barrister clients.
Our charges are straightforward and transparent too, so you’ll always know exactly where you stand.
Want to find out more?
Please feel free to call our MTD specialists on 01625 268482 for an informal chat about how to proceed. For four or more barristers, we are able to offer a FREE MTD presentation in your Chambers. Following the presentation, there will also be an opportunity to have a one-to-one consultation with one of our senior partners.