Reasons Why Remote Workers Perform Better Than Employees

According to a recent study, the percentage of workers who claim they can’t focus at their desk has climbed by 16 percent since 2008 and the percentage of people without access to quiet spaces to focus has increased by 13 percent.

Even without the continual distraction of mobile phones, the design of today’s offices tends to include noises and other distractions that break concentration or impair the capacity for concentrate.

It’s hardly surprising that office workers find it tough to seek out the endorphin rush that comes from monitoring social media, given the availability of empty social media calories at any time.

And if it’s not social media, it’s another app, making travel arrangements, messaging, or making phone calls. The number of distractions from other tasks grows.

And too many individuals still think that sending emails around an organisation adds value, even on a good day when they are focused on their work. Most definitely, it’s simple to become lost in a day of email pushing without accomplishing any longer team goals.

Therefore, taking into account this incapacity to accomplish compliance work without major interruption, we have identified reasons why “outsourced” remote personnel can work longer hours and provide higher-quality results.

  • Remote personnel who have been outsourced are experts. Good outsourcing businesses specialise their workers in many functional areas. Not all things are covered by it. It is an expert in just one compliance area.
  • Remote employees who work for outsourcing companies can focus on the current task. Good outsourcing firms limit outside distractions, preventing access to chat, phone, and email.
  • Specialized support, training, and mentorship are provided to remote employees who are employed by outsourcing firms. This is delivered on-site by reputable outsourcing companies.
  • Remote employees who are outsourced lack access to the internet and are unable to use their mobile phones in a work setting. It’s crucial to finish the task at hand!
  • Focused outsourcing firms typically enable staff to concentrate on compliance tasks. Meetings and chats are hardly used since good outsourcing organisations have streamlined and systematised their operations and processes. It’s all about finishing the task at hand.

So instead of the morning huddle, talk to us about how we might let your local office staff to focus on the crucial tasks.

At info@米6米乐体育, we have a team of experts. info@米6米乐体育 outsourcing is one of the early adopters of cloud computing. Apart from using all cloud-based accounting systems such as SAGE, IRIS, XERO, QuickBooks etc, info@米6米乐体育 has developed its own enterprise software platform to manage workflow & increase productivity & customer satisfaction. info@米6米乐体育 is pioneer in adopting new technologies to help you achieve digital transformation in your accounting department. Get in touch with us for enabling digitalisation in your business.

Do accountants need to change their business model now?

accounting outsourcing firms

Automation is changing how accountants do compliance work. And margin erosion is changing how they get paid for their services. Accountants are under increasing pressure to make their businesses more profitable while somehow managing a bigger workload.

The accountancy industry is facing three issues that affect profit:
  1. Increased Automation in compliance matters.
  2. Increases in the cost of production.
  3. Erosion of profit margins.

Increased Automation in compliance matters

Automation is taking on more and more of the traditional roles of an accountant. While a human is still needed to interpret data and help business owners apply it, there are now huge chunks of an accountant’s job description that are basically obsolete. We’ve been feeling the pressure of these changes since the introduction of cloud accounting services like Xero.

All of this sounds prudent, but it comes at a cost to our industry. As a result of greater automation there will be less compliance work for firms. If you’re relying on compliance work to make ends meet, you will really feel the squeeze.

Increases in the cost of production

Staff wages are the biggest expense of any accounting firm. And most of the firms I’ve spoken to lately say the cost of hiring, training, and retaining good staff is mounting.

Brian from Accounting plus is one boss who has been feeling the squeeze. “The pressure to keep increasing the local labour conditions meant my staff expected a certain level of salary,” he said. “So my mark-up and charge-out to clients for my fees has started to escalate, but my clients are resisting a fee increase.”

Shortage of good staff is especially a problem for firms outside of the main centres. To recruit someone new you face ever increasing wage costs to attract the senior talent you need.

Erosion of profit margins

Accountants are also under increasing pressure to reduce or maintain their prices for annual returns.

CA Paul Walker notes that his clients now expect to pay less for him to do more. “Clients see my compliance service in a cost-versus-benefit light,” he says. “Clients who use MYOB or Xero have been saying: ‘We’ve done all the hard work for you. Surely your fees should now be in the hundreds of pounds?’”

Firms need to move to a leaner production model for their business. Outsourcing your compliance tasks plays an essential part in reducing the cost of production. Reducing costs is especially important as the world navigates the economic havoc brought about by the COVID-19 pandemic. It also frees up time to start working on growing your business advisory services.

There is an urgent need for outsourcing all compliance matters which include:-
  1. Payroll
  2. Book-keeping
  3. Annual accounts and working paper files
  4. Management accounts
  5. Tax returns

The firms can use freed up resources to populate management information from the likes of Clarity, Fluidly (or Futurli) and any other forecasting software. Apart from this the practice management can be automated with the help of software which provides automated quoting, fee invoicing and Engagement letters.

The main focus areas for accounting firms going ahead should be face to face communication /Advisory/ Value added services delivered to clients.

The firms should aim for:
  1. To get more clients into software which will be essential for MTD filings.
  2. To carry out regular client reviews  say monthly or quarterly enabling greater communication with / advisory to clients.
  3. To provide more advisory, forecasts and cashflows.

This strategy is a win win for all of for the accounting firms and brings them into the modern era, providing to clients the service they deserve and adding value. Ultimately these services shall bring about greater client retention, thereby freeing staff to tackle attracting and onboarding new clients. The firms need to look into social media Updation & need to create content, regularly update clients on topical issues and provide a library/better information – PR / CRM.

In an ever-changing business model, taking note of key accounting movements will help enhance business decisions, compliance and success. Making changes to your practice is not as simple as taking on an outsourcing company and beginning to offer advisory services. It’s a business transformation process that needs careful consideration and time to implement. It requires leadership skills to manage staff, make changes to your internal processes and realize the vision of where your firm will be in next coming years.

So, in sum accounting industry is facing a turning point for its business model- Is it time for you to look transforming your accounting practice? We believe that accounting professionals need to keep up with changes that are happening at a much faster pace than before. Speak to the team of info@米6米乐体育 to see how we can help you to transform your business into a powerhouse of productivity. We carry your inputs and transformed to outputs and create value adding option. We consider it is possible to reduce cost and grow profitably with disciplined approach to business transformation.

What Do Visitors Look For In Your Accounting Website?

Importance of A Good Accounting Website.

The world of accounting has grown by leaps and bounds in recent times. It has come a long way from ledgers and manual bookkeeping to advanced digital accounting software. In an age where everything is accessible and readily available in the online world, your accounting services business needs to have a strong online presence.

A good website is an important part of any accounting business. A website is the professional presence of a business in the online world. Hence, it must meet the needs of the audience in order to do well and create a buzz. But what do visitors want when they visit an accounting website? What are their basic needs, and how can you keep them hooked so that they spend a good amount of time on your portal?

Here are the top 5 things visitors look for when they arrive on an accounting services website!

1.Purpose/Relevanc e

The very first thing that visitors look for in a website is its purpose. What is your primary motive behind making this website? How is it relevant to the visitors or the target audience? Are you adding value to a visitor’s experience with your website? These are some vital questions to address when designing your website as they can give visitors just what they are looking for. Make sure that your area of expertise or services that you wish to highlight are clearly stated on the home page. Use CTAs (click to actions) to attract visitors and tell them what they stand to gain by availing of your services.

2.Informative

People who visit a website naturally seek some kind of information regarding a wide range of subjects. It can be about a product, a service, case studies, or anything else under the sun. Therefore, it is of paramount importance to ensure an informative website to attract and retain visitors’ attention. It is equally important to mention exactly how your business can help the visitors.

3.USP

There will naturally be countless websites similar to yours in the online world. But how does yours stand out? Visitors commonly look for USPs and standout points when choosing between different service providers for their needs. Hence, ensure that your website stands out and make it easy for the visitors to choose you. Create the USP for your accounting company by thinking out-of-the-box so that the visitors are attracted to your business rather than your competitors.

4.Entertaining/Riveting

In addition to looking for information, a website must also entertain and be sufficiently riveting to ensure that visitors do not leave the webpage too soon. The longer they stay on one, the more success for a website. Hence, include relevant videos, infographics, and images to keep the website’s design pleasing to the eye. Hiring a professional website developer can stand you in good stead in this regard. When looking for an expert, make sure you check their portfolio to verify if they have worked with accounting businesses websites previously.

5.Clarity

Finally, clarity makes a huge difference in making or breaking a website. If the website’s message is unclear or leaves the visitors confused, it will not do you any favors. Hence, always ensure that your website’s content is clear, precise, and to the point. In the same vein, the design and navigation between the different pages on a website must be easy and straightforward to add to their overall browsing experience. Therefore, make sure that the message of your website is clear and straightforward without beating around the bush.

Conclusion

It is important to remember that not all visitors who land on your website want to avail of your products or services. However, that is not a reflection of the success or failure of your website. The bounce rate must be low to ensure that visitors spend most of their time on your website. A higher bounce rate means that visitors liked what they saw on your website, ensuring repeat visits and purchases in the future.

To sum up, focusing on these five key ingredients can help you meet the requirements of the individuals who visit your website. This can further broaden your customer base, resulting in more leads and loyal customers in the long run.

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How To Increase Your Practice In The Current Situation?

accounting and outsourcing services
Introduction

The ongoing COVID-19 pandemic has changed the way businesses operate across the world. If you have a business or a practice, the chances are that you might have noticed a dip in clients in the last few months since you started working from home. Growing a practice is not as easy as it seems. It needs constant work and strategic decision-making.

With the current situation, it is the time to think out-of-the-box and get creative.

To help you cope with the current struggle of ‘work from home’ so that you can increase your practice, we share with you five golden tips that can take your practice to new heights. Let’s check them out!

Ways To Increase Your Practice Amidst The Ongoing COVID-19 Pandemic
  • Podcast

Creating podcasts can be a great way to help you reach out to more people. You can share your expertise in accounting practices and offer advice through your podcasts. However, it is important to offer your listener an added value so that they can follow your podcasts and gain from it. This will help you build thought leadership and a reason for people to reach out to you.  It will also help you spread a word about your services in a subtle manner.

  • Video Blogger

Easy access to informative videos has made people more aware of all the fields. However, there is still a lot of dilution when it comes to accounting videos. Therefore, you can use it as an opportunity to become a video blogger and have specific informative videos for your audience. This will help them build trust, and they will not hesitate to reach out to you for their accounting-related needs.

  • Free Downloads From Your Website

Offering free resources on your website in the form of accounting-related e-books or audio tutorials will also get you, regular visitors. In addition to that, having an information-rich free resource will make your visitors trust your services more. This way, you can draw more visitors to your website and also increase your business.

  • Email Campaign

Email campaigns are still the best and the most cost-effective way to reach out to potential clients. With crisp content about your accounting services, you can send out emails and increase your practice in no time. You can offer gifts such as a free e-book or a discount for signing up. This way, you can get more people to sign up and your database will increase.

  • Update Your Website

Keeping your website updated is crucial because, in the current situation, everyone uses the internet extensively to get information. Hence, you must update your services, pricing, and offers to lure more potential clients. In addition to that, you can always add new blogs or other interesting content so your visitors have something to look forward to every time they visit your website. Blogs on relevant topics is one of the best ways to grab the attention of potential clients.

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By embracing these tips in your practice, you can go a long way to increasing your business and growing it in the coming months. You can also seek our help if you are looking for premium outsourced accounting services for your firm.

At info@米6米乐体育 Info Solutions, we offer professional accounting outsourcing services to clients in the UK. You can avail of some extraordinary services such as tax preparation, bookkeeping and VAT returns so that your firm could enhance its bottom line amid the ongoing crisis. We have a team of skilled professionals who can help with their know-how of corporate and taxation laws in the UK. For more details, you can get in touch with us at https://sapphireinfo.net !

How to increase your customer loyalty?

Customers are how a business works. If a business has loyal customers, it means flowing revenue and the growth of a brand. Every company must focus on client retention for repeat business. This is because once a customer is loyal to your brand, he/she will not go elsewhere. Businesses that have a certain relationship with their customers usually inspire the latter to make repeated purchases. However, how can you increase your customer loyalty? Let us find out!

Good customer service is key.

Always prioritise customer service in your company. Good customer service is a true reflection of just how much you appreciate and value all your customers. Your customer service support team must be on point on social media platforms and via calls/emails. This will help the customers feel more at ease with their buying decisions with you.

Seek feedback & heed it.

Take feedback from your customers and heed their advice. Every business must go the extra mile to collect reviews of how they have been doing. This criticism can help you go and improve your services. Hence, it will automatically increase your customer loyalty.

Make it easy for customers to buy your products/services.

You must make your products and services easily available to your customers. Many times, complicated sign-ups or asking for too many personal details drive the customers away. Hence, it would be best if you tried to make it easy to buy or pay for your products and services. You can try to offer as many payment options as possible so that the customers can choose as per their convenience.

Your brand should be about more than just money.

Building a brand name plays a vital role in gaining personal loyalty. Therefore, you must aim towards prioritising having a solid name in the market over money. For this, you can offer attractive discounts and impeccable customer service. This might mean walking the extra mile in the beginning, but you will see good returns in the future. If you work with this attitude, you will notice an increase in your loyal customers.

Conclusion

Customer loyalty is the best way to ensure repeat business. In fact, if a customer is loyal to your brand, he/she will recommend it to others. Following these handy tips can help you increase customer loyalty significantly.

At info@米6米乐体育 Info Solutions Pvt. Ltd., we offer expert outsourcing services that can help drive your costs down to help your customers and increase loyalty. Check out our range of services at our website!

How to Stay Productive While Working from Home?

accounting outsourcing services

Working from home can be joyous because of the flexibility it offers to your daily schedule. However, it can be challenging to stay organized and productive if you don’t plan well. Recently, many people opted for or were forced to work from home during the lockdown. Hence, it is a good idea to learn a few hacks to stay productive while working from home. This way, you can discover how you can use it to your advantage and do much more than you imagined.

Have a Designated Work Space

Tricking your mind is important! So, having a designated workspace can help you immensely and put you in “work mode” immediately. If you have a spare room, you can dedicate it to working. If not, you can also take a corner with a table and a comfortable chair. Make sure there is adequate lighting where you work. That always helps focus better and be more productive.

Plan One Day In Advance

Planning is crucial to having an organized and productive day. You must make a priority list of the tasks that you plan to do the next day. This will help you get on to the tasks immediately and not waste time planning things. With a concrete plan, you can also schedule regular breaks and finish your workday without stretching. It can also help you avoid working late nights. Hence, plan in advance and be strict about not working late nights because that might mess up your schedule the next day too.

Have Specific Work Hours

As mentioned above, having specific work hours is very important while working from home. If not, you might end up wasting crucial work time in the morning, leading to working late hours in the evening. You must be strict with your schedule and go to your work area like you go to the office. You must have a nice and healthy breakfast, take a shower and start your workday early. Knowing when your productivity is the highest can help a lot too. You can plan to make the most of your productive hours and schedule all the important tasks around that time. So, make a schedule and stick to it. But don’t make it too tight and leave some space out for breaks and relaxation too!

Create The Right Ambience

The right ambiance can also do wonders for your productivity. Therefore, you must create it well around your workspace. You can do so by keeping your workspace clean and tidy. Furthermore, you can have some soothing music to have a relaxed ambiance. Make sure not to have anything that distracts you, such as television, loud music, or social media chats. Surround yourself with things that help you focus better.

Conclusion

These are some hacks that can help you enhance your productivity at home. You must enjoy your time at home that allows you to have little breaks or short naps. Work from home can be a blessing in disguise. All you need to do is plan it well!

10 Reasons To Outsource Your Accounting Work

Do you feel your competitors are taking away your clients because they are able to out price you? And do you feel threatened by ongoing onslaught of technology in your profession?

Do you feel you need to add new service offerings to your clients?

Then read below and consider outsourcing your accounting and bookkeeping work to achieve various improvements in you practice.

Outsourcing accounting is not just about cost-saving. Here are the top 10 advantages of outsourcing accounting and bookkeeping services for accounting firms.

1. Faster growth for your practice.

One of the major benefits of outsourcing is that you can have more time on your hands to increase your efficiency, grow your firm and restructure your operations to and maximize your return on investment (ROI) on the core competencies of your business. You can use this extra time to try to bring in more clients, by improving your marketing efforts and customer services and more. Outsourcing accounting services is most likely to reduce your costs by 30 to 50%.

2. Never lose a client to non-availability of time

Outsourcing provides you with a team of professionals at a short call and your ability to deliver services is no longer limited to how much time you can personally put in around the clock. Hence, you can now entertain new projects and clients coming your way with all the help you are getting.

3. Don’t pay for the overheads just pay for the actual work.

When you outsource you do not need to pay for the overheads, vacation, sick leaves, NI, training and other staff expenses. You pay for the actual work done for you at most of the time at an agreed price.

4. Alleviate the risk of overnight losing of your staff.

The stuff bad dreams are made of. You reach your office to find one of your staff is ready to put in his/her papers. If you have been in practice for long enough you would definitely have faced this situation. Most of the practices can’t afford a backup person but when you hire an outsourcing outfit you don’t have to worry about such situations, as their business nature requires them to have an expert, qualified and experienced team that is reliable and ready with an effective backup.

5. Standardise quality control .

Most of us get frustrated over review times and other delays and efforts required to minimise errors in the final output. Having an outsourcing team changes all this as you get advantage of standardised quality control procedures put in place by them and you could even mutually agree to more stringent requirements.

6. Utilise diverse experience across various lines of business.

Outsourcing companies work for various accounting practices thereby earning diversified experiences across various sectors. You can utilise this expertise to gain competitive edge in your area.

7. Allow you introduce new services.

If you had always wanted to introduce some new services to your customers but could never take the initiative because of lack of time and expertise available, hiring outsourced services can really help you change that. You can introduce new services to your customers, which is just like adding new sources of revenue and making the best use of your in-house and outsourced capabilities and expertise.

8. Re-engineer your practice.

You can reengineer your services offerings to shift from compliance work to higher proportion of advisory services enabling your firm to be future ready in the upcoming digital work environment.

9. Work less, earn more.

Outsourcing helps you to cut expenses on overheads and pare down your salary bill. You are able to increase your bottom line without increase of efforts from your side. Moreover you can utilise savings in profits to teach yourself and your staff for more value added & niche services.

10. Increased valuation of practice.

The firms that outsource show increased profitability as compared to their peers not using the services. As such you would enjoy higher valuation multiplier increasing the valuation of your firm. This also helps firms in case they wish to raise borrowed funds from banks.

5 Costly mistakes for an accountant

Accountants are the ones primarily responsible for the maintenance and examination of records of a business while computing the financial status of the company by preparing final accounts like P&L account, Balance sheet, etc. Also, accountants are the ones liable to file taxes and scrutinize the accuracy of records of a company. As a result, they are expected to be accurate. Any accounting mistake on their part can have long lasting effects.

Incompetence as well as inaccuracy in maintaining the accounts of the company can give major blow to a small sized company. Though it would not be right to say that big companies wouldn’t be affected by it at all. Misleading information resulting from the accountants mistakes can lead to major losses and punitive action from regulatory authorities. In this content, we will talk about the costly accounting mistakes that could cost high to companies of all sizes and should be avoided by the accountants-

An accountant should not:-

Maintain one account for personal and professional finances of the owners

An accountant should not commit the mistake of maintaining one account for personal and professional transactions. Rather, he should have different accounts for the proprietor’s and business’s transactions to be able to have a clear picture of profitability of the company.  Separate accounts will also facilitate in enjoying tax benefits through claimable business expenses. He should also insist on a business-only credit card. These steps also help in regulatory audit if any done later on.

Go with the traditional mode of monitoring expenses, rather make use of technology

Are you still confined to traditional type of accounting? It not only involves more human errors, but also require vigilant collection of receipts and other proofs of income or expenditure making the work little tedious. Switch to technology and use apps. These applications draft easy to share expenses reports and affirm automatic sync with the accounting software.

Ignore to manoeuvre for growth

Are you emphasizing on for the strategy for long term expansion of your clients’ business? If not, then this is one of your costly accounting mistakes. Successful accountancy refers to overseeing day-to-day finances along with working on to fetch future expansion of the business.

Software and cloud-based accounting confirms much easier way. It tracks the financials along with identifying the potential risks, trends, and metrics.

Show ignorance in accounts receivable slide

Mistake in keeping the track of accounts receivable and outstanding invoices is another serious mistake on behalf of the accountant. An accountant should be highly vigilant as well as strict in making policy for tracking the accounts receivable as well as that of due invoices.

Immediate action, up-to-date accurate records, and adoption to cloud based accounting is the solution to this mistake.

Should not be a one man army

One of the mistakes is absence of comprehensive knowledge as well as qualification of accounting. No matter what the size of a business is, the accountant should be well-qualified, trained, and experienced with the accounting skills. However, the accountant cannot be expected to have expertise in all areas of business. Therefore, one should not hesitate to seek help of  specialised accounting professionals  in the matters related to specific line of business.  An accountant should seek the help of trusted professionals, invest in  excellent IT solutions , and get himself updated with the latest trends and tools.

CHANGES IN THE OUTSOURCED BOOKKEEPING

Change is the law of nature, and outsourced bookkeeping services are no exception. It is essential to adapt to new practices and technologies to provide the best services to the client. We have seen significant changes in the  industry  from various perspectives. So, I have pinned down some of them.

FROM DESK TO CLOUD

The accounting principles have not changed, but the approach to accounting has seen drastic variation. Cloud-based computing has enabled accountants to be mobile and reactive to the needs of the client not only across the corner but globally. This method of online bookkeeping has encouraged outsourced accounting services. Most importantly, modern outsourced accountants are leveraging cloud-based software’s for outsourced bookkeeping to make better decisions and provide fast services.

FROM HANDFUL TO LARGE SCALE

Initially, clients and accountants preferred conventional brick and mortar locations. Therefore thought of outsourced accounting services was never given any attention. But with technological development and globalization, accounting outsourcing services were brought into the picture. We have got many firms providing accounting outsourcing services in the UK.

INCLUSION OF SOFTWARE DEVELOPERS

Accounting outsourcing services in the UK was hired for their accounting expertise. But now the client needs value-added benefits as well. Therefore accounting alone won’t help the clients. That is to say, clients are looking for software options available to them and are including software developers and designers in the team. In short, a perfect blend of accountant and software engineer is the need of the hour.

CHANGES IN THE MEETING DYNAMICS

Gone are the days when the communication was over the phone call or email. The meeting dynamics have taken a sharp turn. Today the clients and the accountants have face to face meeting via video conferencing. However, this option did exist in the past, but it was unreliable and expensive. But with the help of tools like Skype, Zoom, etc. it has become affordable.

AUTOMATION AND ROBOTICS

Outsourced accountants are using artificial intelligence and robotics for outsourced bookkeeping services. Be it online bookkeeping or finance function services; robots are being used in every stream. Most importantly, the efficiency of accounting has set new standards with the use of robots. Besides, the accountants will not spend their time on entering transactions. Rather they can utilize the time for increasing the bottom line of the client’s firm.

OUTSOURCED BOOKKEEPING

Undoubtedly, exchanging documents over the post is quite an old stream. Outsourced bookkeeping services have seen a paradigm shift due to the usage of technology. Tools for carrying out operations in accounting are being appreciated by the clients and extensively used by the accountants. There is nothing like offline work in the accounting sector. To sum up, documents, clients, accountants are all online.

To ace in the race, outsourced bookkeeping services have equipped itself with all the modern technologies and smart accountants to give the best services to the client. By all means, it is a no brainer why accounting firms from the UK are outsourcing their accounting work to firms like  info@米6米乐体育 Info Solutions (P) L td .

The firm has got employee, expertise, and experience to keep your company in safe hands. Contact us at  info@米6米乐体育 . We look forward to schedule a meeting with you.

MTD Compliance for Clients

If your clients have  a VAT Registered business with a taxable turnover above the VAT registration threshold (currently £85,000) they are required to keep digital VAT business records and send returns using Making Tax Digital (MTD)-compatible software. The vast majority of businesses will need to do this for VAT periods starting on or after 1 April 2019. Businesses with a taxable turnover below the VAT threshold can also sign up for MTD for VAT voluntarily.

The MTD pilot for VAT started in April 2018 and is now open to VAT businesses and their agents mandated to use the service from April 2019.It’s important that your clients have the appropriate software package, so if they already use accounting or record keeping software you should also enquire from those software provider to find out when it will be updated for MTD.

When MTD for VAT will be mandatory for business

If the taxable turnover drops below the VAT registration threshold at any point after 1 April 2019 the clients are still required to continue to keep digital records and send HMRC their VAT returns using MTD-compatible software. This obligation doesn’t apply if they de-register from VAT or if they are exempt from MTD for VAT.

For a small minority of businesses that have more complex requirements, HMRC have made the decision to defer mandation by 6 months to ensure there is sufficient time for testing the service with them in the pilot before they are mandated to join. These businesses have until 1 October 2019 to start keeping records digitally and using MTD-compatible software to send their VAT returns to HMRC.

This applies to those that fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (such as government departments and NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users.

What happens if the taxable VAT turnover is below the VAT MTD threshold

If the clients have a taxable turnover below the VAT threshold they can still sign up for MTD voluntarily. HMRC is encouraging businesses with a taxable turnover below the VAT threshold to sign up so they can also benefit from MTD. Businesses can also sign up for MTD for Income Tax. This means, subject to the business type, you can further streamline the clients’ business processes. You can read more about MTD for Income Tax further down.

What the businesses need to do to be ready to sign up for MTD

Your clients will need to keep their business records digitally from the start of your accounting period. If they already use software to keep business records, check the software provider’s plans to introduce MTD-compatible software.

If they don’t currently use software, or their software won’t be MTD-compatible, you’ll need to consider what software is suitable for their requirements.

HMRC has published details of the  VAT and Income Tax software  available for MTD.

Clients using spreadsheets for business records

A spreadsheet can be used to calculate or summarise VAT transactions to arrive at the return information needed to send to HMRC.

If you use spreadsheets to keep your clients’ business records, you’ll need MTD-compatible software so that you can send HMRC your clients’ VAT returns and receive information back from HMRC.  Bridging software may be required to make spreadsheets MTD-compatible. You can read about the ‘bridging software’ below.

The information must not be physically re-typed into another software package .

Records that you need to keep digitally for MTD for VAT

MTD does not require your clients to keep additional records for VAT, but to record them digitally.

The clients’ digital records should include, for each supply, the time of supply (tax point), the value of the supply (net excluding VAT) and the rate of VAT charged. They should also include information about your business, including business name and principle business address, as well as their VAT registration number and details of any VAT accounting schemes they use.

MTD-compatible software

Compatible software is a software product or set of software products that between them support the MTD obligations of keeping digital records and exchanging data digitally with HMRC through the MTD service. If more than one application is being used, data that flows between those applications must also be exchanged digitally.

Digital records can be kept in a range of compatible digital formats. They do not all have to be held in the same place or on one piece of software. For example, a spreadsheet can be a component of digital record keeping provided the product that consolidates records, or summary records from the spreadsheet, can exchange data digitally with HMRC.

HMRC will give businesses until 31 March 2020 to make sure there are digital links between software products. Before that date, cut and paste will be an acceptable way to transfer information .

The exception to this is where return information is to be transferred to a software product enabled for an Application Programming Interface (an API provides a secure link between software and HMRC) and designed to submit the 9-box VAT return (such as bridging software). In those circumstances the transfer of information must only be digital.

You need to discuss with the software providers in case of any doubt.

Bridging software

‘Bridging software’ is HMRC’s description of the digital tool that can take information from other applications, for example, a spreadsheet or an in-house record keeping system, and lets the user send the required information digitally to HMRC in the correct format.

Finding out what software is available for MTD

HMRC has published details of the  VAT and Income Tax products  that are currently available and will be adding to this in the coming months as the pilots progress and more products become available. You can find details of all the software including bridging software at the HMRC page along with features of all the software listed.

Income

HMRC has launched a voluntary MTD pilot for Income Tax in spring 2018 and you may want to consider joining this. Read about how to join the MTD pilot and about  using software  to send Income Tax updates.

You can find out which  software  is already available to send Income Tax updates for MTD on GOV.UK.

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