Salons and barbershops who pay VAT now have to change the way they do their tax. The new ‘Making Tax Digital’ rules have been in place since April 2019. Making Tax Digital or ‘MTD’ is part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
The new rules mean that as any salon business who is above the VAT threshold (£85,000 at the time of this article) or uses the VAT Flat Rate Scheme will have to follow the MTD regulations.
Making Tax Digital is here…But what is it?
The new rules mean that you will have to:
• Keep digital (electronic) VAT records.
• File your VAT returns using MTD-compatible software.
The benefit of MTD is that you keep and store up to date records in real time, which means you’re less likely to lose receipts and documentation. Digital record keeping will also reduce the risk of unwelcome and costly HMRC compliance interventions and help you manage your cash flow more effectively.
Do I need software for Making Tax Digital?
Don’t spend money on upgrading your accounting software…the Simple-MTD-VAT-Filer is a standalone desktop application for Windows 7 and 10 designed to help you file away your VAT returns online, quickly and easily. It’s all you need to be MTD ready!
- Recognised by HMRC
- Small one-off licensing fee
- No subscription required
- Easy to install
How can I be Making Tax Digital ready?
1. Register for MTD with HRMC
You must be registered with HMRC before you can use this tool to submit VAT returns. Register for Making Tax Digital here!
2. Download the Simple MTD VAT Filer application
You can download the application here!
3. Buy the license
You can purchase your license here for just £35 +VAT!
4. Send your VAT return – What could be simpler?
We hope you found this useful!
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