Meet the firms making the most of Making Tax Digital (part 1)

posted in Uncategorized

In part one of a two part series, we share the story of Clare Mannall.

Clare set up her firm, CEM Bookkeeping and Consultancy in 2014. Since then, the firm has grown – employing three staff members and working with over 30 clients.

Clare has been using Xero’s Making Tax Digital (MTD) for VAT functionality since November 2018, onboarding ten eligible clients so far.

Here she outlines why MTD is an opportunity for firms and their clients.

How did you end up here?

After 13 years of teaching, I decided to make a career pivot and get into accounting. Shortly after qualifying, I set up CEM Bookkeeping and Consultancy.

In the early days it was just me but now we’re a team of four.

We’re fortunate to work with an interesting mix of clients, like breweries and recruitment agencies, which keeps things interesting.

Clare Mannall is leading the way for Making Tax Digital.

What has Xero done for your firm?

Using Xero means we can work from anywhere and everything we need is securely stored in one place.

This is handy when I’m visiting clients because I don’t waste time looking through complicated and outdated spreadsheets – I can advise clients on the health of their business in a matter of seconds with up-to-date financial information from Xero.

Tell us about your Making Tax Digital journey so far?

My MTD journey started after attending Xerocon last year – it was clear the sooner we started the more time we’d have to iron out any issues we encountered.

My clients were also asking questions about the scheme so I took Xero’s MTD course to familiarise myself and understand how it was going to impact them.

After completing the course I earned my Xero MTD-ready badge demonstrating our readiness and giving our clients peace of mind.

When did you start using Xero’s Making Tax Digital for VAT functionality?

We started using Xero’s MTD for VAT functionality in November 2018 and we’ve onboarded ten eligible clients so far.

We were eager to start submitting clients’ VAT returns as soon as possible to ensure everyone involved was comfortable with the new process.

Funnily enough, some of our clients still ask when we’ll be MTD-ready and it’s great to say we’re already there.

Tell us about your experience using Xero’s Making Tax Digital for VAT functionality?

It’s actually really easy to use and the built-in VAT features save us heaps of time.

For example, the functionality calculates how much VAT is due and even posts this information in real-time to HM Revenue and Customs.

As the pilot programme has progressed I’ve also noticed Xero’s MTD functionality become more intuitive – you can make now make adjustments which you couldn’t before.

Why is Making Tax Digital an opportunity?

MTD for VAT isn’t a choice – most VAT registered businesses will need to be compliant by 1 April 2019. My advice to other firms is take this opportunity to switch your clients onto accounting software.

When I transitioned my clients, it wasn’t just about needing to be MTD compliant. We’ve gained so much from accounting software and I wanted my clients to benefit too.

What advice would you give to firms that aren’t Making Tax Digital compliant yet?

Don’t leave it to the last minute – before signing up to Xero’s MTD for VAT functionality you’ll have to set up with HM Revenue & Customs first and this involves a few stages.

So the more time you have, the less stressful the transition will be for you and your clients.

Whether it’s improving efficiency or enjoying the freedom to work from anywhere, MTD is really a chance to show clients what else accounting software can do for them.

If you’re a Xero partner, you and your clients that meet the latest criteria set out by HMRC can join Xero’s MTD for VAT beta programme now. For more information speak to your account manager or email partnerteam@xero.com.

The post Meet the firms making the most of Making Tax Digital (part 1) appeared first on Xero Blog.