There are huge changes in reporting to HMRC looming around the corner!

An important message to our clients and those small businesses that aren’t but whom the following may effect

There are huge changes in reporting to HMRC looming around the corner!

HMRC intend to force all small businesses including landlords to keep their records on cloud accounting systems and to report to HMRC quarterly by 2018.  

Whilst we might have very strong feelings about HMRC assuming the power to tell us how to keep our records, and their chances of achieving a high level of compliance, Hornbeam’s role would seem to be to help you, our clients, remain compliant.  Whilst you have the right to adopt any cloud accounting system you wish, and to use it as you wish, we would like to offer you the opportunity of adopting Hornbeam’s QuickBooks cloud accounting system.

There are two possible courses of action in engaging with us and having your accounts in the cloud. In either case we will need your records to get your accounts written up to date.

Then either:

  1. we can download your bank details and update your basic records quarterly (with you having no significant role in the process, apart from getting your records in to us 4 times a year) or
     
  2. we can give you access to the records, and training in how to use the system (so you can use it to do your purchase ledger, sales ledger, VAT). There are significant advantages in this for you, in that: (i) the bank-feeds automate quite a bit of your bookkeeping, (ii) your records will be pretty much up to date in real time and (iii) we can help support you on line from our office.
     

In the short term this may seem like a “kafuffle and hassle” 4 times a year instead of the once – however in the longer term this should you help become more efficient as well as HMRC compliant.

Need more information on Digital Tax – give me a call.

Phil