VAT & HMRC Submissions
If your business is based abroad but is operating in the UK, you may be required to register for VAT and subsequently send VAT returns to HMRC.
Using an online system, returns must be submitted to HMRC through government-approved software. From the 1st April 2020 you will be unable to transfer data between software. It will need to be recorded comprehensively in one platform.
Organisations outside of the UK could face complicated issues if they do not get themselves ahead of the game in understanding the latest technical and financial legislation. Outsourcing your record keeping to a specialist such as Goodwille will ensure you are compliant with the latest legislation. For startups in particular, where resources can be limited, it allows you to stay ahead in your operating industry, rather than spending time on tasks like these.
Historically, it didn’t matter how you would keep financial records. However, with the introduction of digital tax and trying to ensure there’s full transparency across company accounts, businesses are no longer legally able to keep manual financial records for VAT. Companies must use a compliant approved accounting system directly connected to HMRC through an API starting from April 1st 2019. Goodwille’s preferred accounting system, XERO, is fully compliant with MTD, and we can provide a bridging tool for clients using a platform which is not yet compliant.
Making Tax Digital (MTD)
Making tax digital is an initiative which came into effect on 1st April 2019. Making tax digital is part of the government’s efforts to ensure both companies and their individuals are keeping track of their tax contributions. It ensures greater transparency from businesses to the government.
Construction Industry Scheme (CIS)
If you are operating in the construction industry and using subcontractors in the UK, you may need to register with HMRC for the Construction Industry Scheme (CIS). Once you are registered for CIS, you must make monthly submissions to HMRC.
Contractors must register for the scheme, and advance payments are deducted from the subcontractors pay for tax and national insurance.
CIS covers construction work to buildings, such as site preparation, decorating & refurbishment. If you are operating as architects, surveyors, scaffolding hire, carpet fitting, delivering materials or similar, you probably do not need to register for CIS.
As our CFO, Kevin’s role is to oversee the teams that manage the delivery of fully compliant financial processes for our clients, as well as for advising them on the decisions that will help drive their businesses forward. He is responsible for the Financial & Payroll departments across both the London and Warwick offices.