A FIRM in Swindon is warning local companies about a new digital tax system coming into force in April.

Optimum Professional Services, based in Regus House on Whitehill Way, is issuing guidance on the Making Tax Digital portal, which goes live next year.

The new rules mean that from April 1 it will be mandatory for all incorporated businesses that are VAT registered and over the threshold of £85,000 to file their tax returns via a new online portal called Making Tax Digital, requiring certified software.

It will gradually be phased in for businesses over the threshold before being rolled out across the board for all businesses from April 2020.

Mandy Gibson, accountancy specialist at Optimum Professional Services, told the Adver: “They are saying that there will be penalties, but I imagine they will be quite lenient for the first 12 months to allow everyone to get everything underway.

“There certainly will be when it’s all up and running.

“Ideally companies would need to move on to a cloud-based software beforehand.

“When it goes live, thy can use the software to keep its books and records, they can then be sent into their accountant who can file it onto the digital VAT return.”

This will include accounts, quarterly returns and self assessment will need to done using the MTD-certified software online.

One example of the software which has been made digitally compliant for the change is Quickbooks, which allows accounts and documents to be accessed easily online.

Other than that the change might will look the same to businesses once they upload their accounts through the software.

“Nothing changes a great deal, it’s just the way that it’s done. The return will look very similar,” added Mandy.

“Some clients aren’t aware of it. We’re trying to educate them on it, and get them onto the cloud-based software before it gets to the last minute.”