Making Tax Digital Software

Making Tax Digital Software

As you will know Making Tax Digital (MTD) is the hot topic at the moment and information about how this will affect businesses is slowly trickling out, and we will keep you informed of any news we hear.

 

With regards the timeline for change, there are two dates that you need to be aware of:

  • April 2019 – businesses that are VAT registered and have a turnover greater than £85,000 must start submitting VAT returns digitally.
  • April 2020 - all companies will have to keep all their records digitally and file quarterly returns.

What type of software will be available for MTD

The software that businesses use will not be supplied by HMRC. However all software and spreadsheets must able to connect to HMRC via an Application Programming Interface (API). 

HMRC is currently working with software suppliers to ensure that they are ready for the first deadline in April 2019. To see the list of the suppliers that are involved in the pilot scheme click on this link – Software Suppliers Supporting Making Tax Digital for VAT.

The type of software will depend on how familiar with using digital software. If you are currently recording all information on spreadsheets, then you may prefer to use an application which will extract the data from the spreadsheet and enter it directly into the HMRC portal. The main thing to remember is that you will not be able to cut and paste figures in manually.

Alternatively, there are many cloud-based accounting software packages available on the market which are competitively priced and easy to use. These include Xero and Sage and many others which allow you to record income and expenditures online and have a bank feed so you can keep up to date with your finances. Many of these companies are now working on developing the link with the HMRC Portal.

How can we help you?

We will keep you up to date with changes as they happen and will be advising all our clients on the best way for them to move across to digital record keeping. We also have a good understanding of the General Data Protection Regulations (GDPR) so can ensure that any processes you put into place comply with the new regulations.

We already support clients with setting up and using online digital software so we can advise on the type of software which will be most compatible with your business needs. If you don’t have the time or skills in-house to manage your digital accounts in-house, then our team of bookkeepers can support you.

We know that implementing any change in your business can be difficult.  Changing the way you record your finances and ensure compliance with HMRC regulation will be more challenging especially if you are not used to keeping digital records. Contact us, and we will help you as much as we can, you can call 0115 956 9452 or email This email address is being protected from spambots. You need JavaScript enabled to view it.


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