Accounts going online by April 1st

[Wishiwasatoptiler]

So I was out with a mate whose self employed also. We got talking about accounts, now he uses an accountant and has for 20 yr, his accountant has told him all accounts must be done using online software by April 1st., like quick books, has anyone else been told this.
I've not heard anything, but i dont have an accountant.

 

[Qwerty]

Ive used 'freeagent' software and an accountant for years now. They told me massive changes are coming in over the next 2 years but it won't affect me as I'm already doing it. I guess it could be to do with the software thing but thought it was more to do with quarterly returns

 

[J Sid]

Found this online:

From April 2020, it is proposed (but not confirmed) that the self assessment tax return is being replaced by five new reporting obligations made during and after the tax year.

Five tax returns per year

The first tax year likely to be affected is 2020/21. This runs from 6 April 2020 to 5 April 2021.

Assuming you choose an accounting period that is co-terminus with the tax year your:

1. First report will be due in June/July 2020.
2. Second report will be due in Sept/Oct 2020
3. Third report will be due in Dec 2019/Jan 2021
4. Your Self Assessment tax return for 2019/20 will also be due by 31 January 2021.
5. Fourth report will be due in March/April 2021
6. Fifth and final year-end report deadline: probably January 2022 in the first year.

 

[Flintstone]

Does this mean that my accountant can do even less work for his £300?

 

[GoneGuy]

Looks like it will mean accountants getting less work

 

[Wishiwasatoptiler]

Think i better get an accountant. Don't want to fall foul of the tax man.

 

[Qwerty]

Accountants will remain the same cost I reckon. They are ultimately the ones that check through it all. We just sign it off and pay up

 

[Wishiwasatoptiler]

They must guide you though

 

[Concrete guy]

VAT will also require software to make on line returns from April this year. Well it's being phased in from April this year and I'm reasonably sure it's compulsory from April 2020.

 

[Wishiwasatoptiler]

Thats what it must be, he is vat reg.

 

[Concrete guy]

VAT Notice 700/22: Making Tax Digital for VAT - https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat



VAT Returns and EC Sales List: commercial software suppliers - https://www.gov.uk/government/publications/vat-returns-and-ec-sales-list-commercial-software-suppliers/vat-commercial-software-suppliers

 

[Just Rizzle]

300 quid for an accountant are you sure he can add up, no change out of 1500 for mine last year

 

[Concrete guy]

300 quid for an accountant are you sure he can add up, no change out of 1500 for mine last year

Ultimately it comes down to how much they do for you.

If they are collating all your receipts, doing your VAT returns if you have them and effectively running your books they are a book keeper as well as an accountant and you're going to pay for it.

Our accounts costs are also only around £600 to £700 a year but that's mostly because I do the books, PAYE returns, VAT returns, EC Sales lists and all associated paperwork.

So once a year all the figures are given to our accountant and he submits them and organises our Corporation Tax.

This has the added advantage of allowing you to understand your own business in more detail and see if you're leaking cash anywhere or if you can make it more efficient.

 

[Bopster]

I’ve been using quickbooks for nearly a year now, I’m effing terrible with paperwork but this has helped massively. I switched to software as I had to go Vat reg and it was a no brained. £15 month and I do the everyday stuff then she helps with the tax and vat returns.

 

[One Day]

I think I'll have to start using quickbooks. Looks too easy not to.
May as well get used now to being fully on top of things...