SPRING 2019 ROUND-UP ROUND-UP MTD... as easy as 1,2,3? From 1 April, it will be mandatory for businesses with a turnover (not profit) of more than 85,000 to maintain digital accounting records and file electronic tax returns. It is part of the governments Making Tax Digital (MTD) scheme, which aims to move the UK away from paper-based book-keeping. HM Revenue and Customs (HMRC) says the scheme is a major step towards bringing VAT into the 21st century and claims it will make it easier for businesses to get their tax right first time. Avoidable mistakes, it adds, cost the Exchequer more than 9bn a year. For some businesses with more complex requirements such as trusts the timetable has been pushed back until October 2019. Those affected by the change in April, however, will have to submit key information relating to their VAT return digitally, using software compatible with HMRCs system. The software is not being supplied by HMRC, so businesses will have to buy some or upgrade their existing software. It has been argued that going digital could ROUND-UP save small businesses money in the long term, by making the process of VAT returns more efficient. According to the Institute of Chartered Accountants in England and Wales, however, only 10-12 per cent of businesses currently use VAT software the rest use the HMRC Gateway. The Federation of Small Businesses (FSB) has produced a In just over three weeks, the UK is set to leave the European Union. The government summary has been running an information campaign guide to MTD to ensure businesses know how Brexit and is holding will affect them and the steps they need Making Tax to take to be ready. Visit GOV.UK for more. Digital seminars across the UK. These aim to give small-business owners the chance to get face-to-face advice and have their questions answered. 29 MARCH 2019 For more on the new tax regime and advice from the FSB, see To submit, hit return... in this edition of TSBN. Credit: Karen Woolley, development manager, Federation of Small Businesses Image: iStock.com / AndreyPopov FIGHT THE FRAUDSTERS If scammers can get hold of enough information about you and/or your company to assume your business identity, they can use it to acquire credit, goods and services. Business identity theft is the same as personal identity theft, although the amount of money involved can obviously be much higher. So its important that small businesses (and, indeed, large ones) take steps to avoid falling victim to such fraud. To scam-proof your business, set a security policy that everyone adheres to at all times. Have strict guidelines on the type of personal information that should never be revealed, especially via email or electronic communication. You should: n Keep the personal details of employees and the businesss financial details out of emails n Be suspicious of emails from sources you dont recognise and have a good spam filter n Never open attachments or click links in emails from people you dont know nReport suspicious emails to the appropriate authorities Trading Standards, Business Link or, in some cases, the police. All of these measures should be emphasised in your staff training. For more information, contact your local Trading Standards office. Credit: Bob Charnley, Trading Standards manager; Image: iStock.com / courtneyk For further information, please contact your local Trading Standards Service