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How to Expand Your VA Business Super Fast in 2019!

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You may not already be aware that there is a new initiative about to come into force for UK Business Owners from April 2019 called Making Tax Digital - you wouldn't be alone in not know this, as according to recent statistics some 60% of UK Business Owners don't realise either! 

If you do not currently offer bookkeeping, accounting or financial support services within your VA business this is a massive opportunity for you to support and really make a very positive impact for small business.  We are less than 6 months away from this date but action is needed now.

SO what is Making Tax Digital, what does it mean for you and your clients and how can you help? 

Making Tax Digital (MTD) is HMRC's initiative to make sure the UK tax system is effective, efficient and easier for tax payers

From April 2019 VAT registered businesses with a turnover above the VAT threshold (currently £85k) will no longer be able to log in and type their VAT figures onto HMRC's website - which is currently what 71% of businesses do.

Instead, they will have to keep digital records and submit VAT returns using compatible software.  HMRC lists Xero as software that is compatible for MTD for VAT and Xero have been part of HMRC's pilot scheme since April 2018.

Despite the fact that MTD for VAT is legally mandated and enforced with fines for failing to comply, it is important to be aware that HMRC will NOT be developing or providing their own in house software for this, so businesses will have to rely on software solutions that are currently on the market.

So what does Digital Record Keeping mean?

There has to be a digital record of:

  • The business name and address
  • VAT Registration Number
  • VAT Registration Scheme
  • Information about supplies made and received (these must be kept for 6 years)
  • Keep and preserve records in a digital format via cloud accounting or bridging software a list from HMRC of suppliers can be found here
  • Create and provide a VAT return from digital reports
  • Receive info from HMRC via an API platform.

There are bridging software options if cloud based accounting platforms are not their first choice but in my opinion these are a "sticky plaster" approach as this is just the beginning of digitalisation, with Corporation Tax and Self Assessment following suit in 2020.

What does this mean for your VA Company?

60% of business owners are unaware of MTD requirements

70% of business owners are unaware of the need to use software

71% are unaware of the requirement to submit quarterly VAT returns.

This is a massive opportunity for you as a VA business to help and support these quite honestly staggering numbers of UK businesses get ready for the change NOW and support them in going digital. 

If you don't currently offer financial support services within your VA Business then fear not, we don't want you to miss out on one of the biggest changes to the UK tax system and the opportunity for you to help clients embrace digitalisation and transition to MTD.

We can work alongside you as if we were your Virtual Finance Team, helping your clients get ready for MTD and keeping them compliant, calming their nerves, as well as providing a whole range of bookkeeping, credit control, payroll, cashflow management and much more.

In partnership with my colleague Seth Proctor, we have launched The Virtual Bookkeeper - Bookkeeping for Virtual Assistants.  With over 45 years experience between us we feel very confidence in being able to provide the very best support to you and your clients.

Don't just survive - transform and thrive by getting in contact with myself and Seth, grow your VA business profitably without the need for you to have accounting knowledge, earn an additional income stream (we even give you a guide price as to what you should charge your clients).

We genuinely want to help as many VA business providers as possible expand their portfolio of services and really ramp up your profitability for 2019!

Website: https://thevb.xyz

Email: hello@thevb.xyz

Here's to a new, brighter digital future!

Speak soon

Tracy