The Best HMRC MTDFVAT Software
If you run a VAT-registered business with a taxable turnover of at least £85,000, it may not have escaped your attention that on April 1st 2019 the company must keep all financial records digitally. This will be for the purpose of VAT only.
It will also be necessary for the business to submit its VAT return information to Her Majesty’s Revenue and Customs (HMRC) via software that is MTD compatible. The acronym MTD stands for Making Tax Digital and this software needs to be running within the accounts department of all the business that are eligible.
If you are already using accounts or record keeping software, you should speak to a software agent about installing and replacing the MTD for VAT software soon. There are just a few months to go until the start date, so businesses must get ready.
When deciding which software to use to begin your records keeping and VAT submissions through MTD you should look at: a software package that is flexible, user-friendly and compliant with the guidelines drawn up by HMRC.
If you already use your own spreadsheet system or another piece of software, then you will need to use an MTD for VAT bridging software solution. All the bridging software and the MTD for VAT software can be ordered here.
The MTD for VAT software is a cloud-based system and is termed in the trade as an SAS (Software as a Service) product. The bridging part of the software is used solely to make the existing software compliant.
However, the good thing about the bridging software is that it will not disrupt the existing accounting system or process in any way. These systems will still run as usual but the bridging software will handle all the conversions to HMRC compliant records.
The control centre part of the NTD for VAT software has many features. These include a management dashboard, VAT report file, dashboard view of all the company’s obligations and time restraints. It also has complete control over the data of VAT submissions for individuals as well as companies. There is even gentle reminders of when submissions are due and when certain tasks have to be completed by.
Most businesses use Sage, Xero, Quick Book, Free Agent and other various book keeping packages – and it is good to know the CSV import feature complies well with the MTD for VAT software.
