Clearview National December 2018 - Issue 205 | Page 67

BUSINESSNEWS
and loss statements must be derived directly
from these electronic records and submitted
electronically to HMRC.
HOW TO COMPLY
There are three ways installers can comply:
• Send information regularly to their
accountant who acts as their agent
and records the information in their
accounting system and performs the
submission to HMRC.
• Record all sales and purchases in a
spreadsheet where the VAT return is
calculated and submit these totals via
‘bridging software’ to HMRC. Use the
same method for profit and loss returns in
2020. There is a rumour that this method
will only be allowed for 12 months.
• Run a system of their choosing to generate
and capture sales and supplier invoices
and submit electronically to HMRC from
there.
MOVING TO DIGITAL
Already 98% of VAT returns are submitted
through the internet either directly by the
business or by their accountant. However
currently only 8% of VAT registered
businesses use their own accounting software
to file their VAT returns.
There are some reasons why moving to a
digital platform can be good for installers:
• If all information is generated from a
system, many things like quotes and
invoices can be done faster and numbers
are always up to date. That should save
time, help chase any debt as well as
manage the business.
• Once people are familiar with a system,
there is less work and cost than doing it
manually. That’s why computers are so
prevalent in so many businesses.
• The paperwork can look more
professional.
There are some potential issues for installers
with adopting software:
• A lack of familiarity with new software
may create issues.
• There is a possibility they will be dropped
in the deep end with no support.
• Additional cost.
The way to address these issues is:
• It’s important that lockmsiths receive
a full demonstration of any software
they plan to use so that they can see for
themselves how difficult or easy it is.
• Talk to other users to hear what their
experience is.
• Choose a supplier that provides excellent
support and specialises in the trade
industry.
• As a result, weigh up the cost versus the
benefits that should accrue.
MTD VERSUS GDPR
Both MTD and GDPR are supported by
the law. The difference between the two is the
need to do something specific to comply with
MTD and the targeted fines for those that fail
to comply. So, there is a distinct difference.
Having said that, for anyone not VAT
registered, implementation is some time away.
Also, HMRC seem to be promising that
enforcement will be gentle, at least initially.
My hope is that this article will help with your
planning and I would like to wish you good
luck.
Benjamin Dyer is the CEO of Powered
Now. Powered Now aims to take the pain out
of admin and paperwork for installers and
other trade businesses like plasterers, roofers
and many more.
www.powerednow.com
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