For businsesses with a turnover above the VAT threshold (currently £85,000), there are going ot be imminent changes to how VAT returns can be submitted. The changes may mean that businsesses need to manually enter tax returns through the online account with HMRC, rather than through the existing software.
To comply with these new obligations, qualified businesses must:
- Keep records digitally (for VAT purposes only), and
- Provide VAT return information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software
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.
Is your software compliant?
Software companies do not plan to make all of their versions of an accounting software compliant, only those which are upgraded this year. In order to ensure you are able to comply with your obligations, we recommend contacting your provider to confirm your software will remain compliant.
Most software companies are starting a subscription costing model which represents a move away from the previous “licence 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 under the subscriptions model or consider if there is another software to suit their financial and accounting needs. We are happy to help companies consider their options.
We will be holding a Seminar in May to demonstrate “Xero” and “Sage”. Both are cloud accounting software packages that have capability to link to various add ons, helping streamline accounting transactions. Both software packages are also fully compliant.
Our cloud accounting expert – Lauren Towey 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.