For businesses with a turnover above the VAT threshold (currently £85,000), there are going to be imminent changes to how VAT returns can be submitted. The changes may mean that businesses need to manually enter tax returns through the online HMRC portal, rather than through existing accounting software if it is not Making Tax Digital (MTD) compliant.
From April 2019, there are increased obligations on businesses to keep records digitally which could have a significant impact on your current business processes. In addition, businesses will only be able to submit VAT returns through MTD compliant software which means that the days of paper returns and manual returns through the HMRC portal are numbered.
Is your software compliant?
Not all software companies are planning to make the current version of their accounting software compliant, meaning businesses may need to upgrade to newer MTD compliant versions. In order to ensure you can to comply with MTD obligations, we recommend contacting your software provider to understand what this means for you.
A number of software companies are transitioning to a subscription costing model which represents a move away from the previous “license purchase” approach - this will result in a monthly cost for the life of the product with support and updates included.
What are your options?
Companies will either need to upgrade with their current provider, potentially under the subscription model or consider alternative software solutions available to suit their financial and accounting needs.
Upgrading or changing your software is not a straight forward decision and the associated costs under the new subscription model will, in many cases, be significantly higher than your current costs.
We are happy to help you understand your obligations under MTD and set out the options available.
We will be holding a Seminar on Thursday 10th May to demonstrate “Xero” and “Sage”. Both are cloud accounting software packages capable of linking to various add ons, helping streamline accounting transactions. Both software packages are also fully MTD compliant.
Internal and third-party cloud accounting experts will be providing further insight on which package will be best suited to your business needs. There will also be live demos of each software package, so you can familiarise yourself with the different features and capabilities.
To make sure you are getting the best value for money and the right package for you, call 0161 477 2474 to discuss your options, understand the best way forward and also have access to exclusive discounts on selected licences.