What Does ‘Keeping Digital Records’ Mean?
Keeping digital records is a fundamental part of Making Tax Digital (MTD). From now on, you will need to maintain your records in a digital format, either stored on a computer or in the cloud.
While HMRC accepts digital copies of receipts and invoices, which can help save physical storage space, it can be a hassle to manage. That’s where MyTaxDoc comes in—let us help you streamline your recordkeeping so you can focus on what matters most!
What Is HMRC’s Plan with Making Tax Digital for VAT?
For a comprehensive overview of the VAT records that must be kept digitally, HMRC’s VAT Notice 700/22(1) provides detailed guidance.
To save you time, we advise transitioning away from any manual systems to a digital solution as soon as possible. This can be achieved through HMRC-approved software or by engaging the services of an accountant, ensuring your business remains compliant with MTD rules. Let MyTaxDoc help you make this transition smoothly and efficiently!
Important Compliance Warning for VAT Accounting
Rely on Approved Solutions
Avoid using unapproved software like Microsoft Office (Excel, Word) for VAT accounting, as it poses significant compliance risks.
Data Safeguarding
Ensure your records are stored securely for the required statutory period to protect against loss or corruption. Excel and Word files are prone to issues like corruption and accidental deletion.
Consider Alternatives
Transition to HMRC-approved software or engage a qualified accountant to maintain your digital records and ensure compliance with Making Tax Digital (MTD) regulations.
Getting Ready for Keeping Digital Records and MTD
Businesses have the option to submit their information either through their accountants or independently using HMRC-approved accounting software.
At MyTaxDoc, we take pride in digitising records for our clients. If you prefer traditional methods or are a bit sceptical about going digital, you can send us all your paperwork. We’ll scan and digitise it for you, alleviating a lot of administrative hassle and ensuring compliance with current and future MTD rules.
If your current software isn’t reducing your administrative workload, it might be time to consider switching to a different provider or using an accountancy service like ours. Let us help you navigate this transition smoothly!
Ready to Transform Your Accounting Experience?
You entered your profession to pursue your passion, not to worry about taxes and compliance. Let’s start with a FREE discovery call. No obligation, just a chance to learn how much easier your financial management can be with MyTaxDoc.