One thing that should be on every business owner’s mind is
Making Tax Digital (MTD). Come April, the Government’s long-awaited Making Tax Digital initiative finally rolled out. It’s a long-awaited change, and it sees what’s traditionally been quite an old-fashioned system finally starting to modernise.
Here at AIMS Accountants for Business, we’ve helped plenty of new businesses and incoming owners adapt to the changes from MTD. To help your purchase go smoothly, here’s a couple of things to think about when looking at a business purchase:
1. Is the software current?
MTD has been “in the air” for a while, but as an actual law it’s only a couple of months old. Businesses should have had plenty of time to prepare, but there are always business owners who will have waited until the last possible minute, or ignored the requirements because they know they’re selling.
A business that’s really worth buying will have approved bookkeeping software and kept it up-to-date. However, it’s always worth checking.
2. What are your plans for future record-keeping?
MTD is starting with just VAT, but eventually it will cover every form of tax. As such, you need to be clear on your plan for the future when you’re looking at buying a business. For our part we’d suggest just getting it over and done with all at once and making a full switch to digital tax systems. But there are options available for those who would prefer to take the changes as they come in the form of “bridging software”. You just have to make sure you have a plan.
MTD is only going to get more prevalent. If you’ve got any concerns about how it’ll affect your new business, it’s always worth speaking to a local business accountant to see what advice and assistance they can offer!
AIMS Accountants for Business is a nationwide network of SME-focused tax accountants, who make tax simple for business owners everywhere.
If you’d like to speak to your local AIMS Accountant about their services, click here.