Making Tax Digital begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses with turnover above the threshold of £85,000 will have to keep digital records and submit VAT returns using compatible software.
The new rules apply to the first VAT period starting on or after 1 April 2019
If your accounts are based on manual records or spreadsheets then you need to take advice right now. Whilst it will be possible to use bridging software in the short term we are strongly advising our clients to adopt a cloud based accounting solution to address MTD.
Modern cloud solutions are far more than simply the answer to MTD, they can transform the way you run your business. Call us now to find out how we can help you select your perfect solution.
If you accounts system is computerised we list below various software and it's compliance with MTD. If your system is not listed here please call us for advice.
If you are still using desktop software now could be the perfect time to move to the cloud. We have years of experience in migrating our clients to the most appropriate solution for their business. We are experts in Xero, Quickbooks Online and FreeAgent the three premier solutions for small and medium size businesses.
Call us now to see how we can help.
Xero is compatible with MTD
Quickbooks online is compatible with MTD. If you are using Quickbooks desktop then only the 2019 version is compatible. If you hve an active subscription you can upgrade foc.
FreeAgent is MTD complaint.
Sage Line 50 is only compliant from version v220.127.116.11 and later.
Sage cloud accounting offerings will be MTD compliant.
It seems likely that TAS users will have to purchase some additional software to comply with MTD.
Now would be a great time to move to the cloud.
If you have any concerns about the compatibility of your software with MTD or indeed whether MTD affects your business please get in touch.
When to register for MTD
If MTD for VAT impacts you, you should talk to us about registering for MTD with HMRC. If you are already using our VAT service then we will arrange registration on your behalf.
Once registered you will not be able to file current VAT returns using the gateway that we are all used to. You must make sure that you either get compatible software or that the software you already use is suitable for Making Tax Digital before you sign up.
Most clients have decided only to register after filing their last pre-MTD VAT return. The return for your first VAT period starting on or after 1 April 2019 will need to be compliant with MTD.
This helpful video from HMRC explains how to register for MTD.
if you you'd like to find out more, let's talk
or call us on 01942 760500 or 01204 364652