What alternatives are available to you?’
Choosing the right software to pay your business’s VAT bill is essential with the rollout of Making Tax Digital rapidly approaching. Once MTD arrives, HMRC-approved software will be the only way to pay VAT. Time is running out before the first VAT deadline for MTD, on 1 April 2019
So, you know the deadline but what software options does your business have?
HMRC has been working with a wide range of software suppliers to produce suitable software for businesses and their agents. Some of have already been approved for MTD, one of these is Xero.
Whichever Making Tax Digital software you choose, it will need to be able to:
- Keep records of income and expenses for Income Tax
- Keep records of sales and purchases for VAT
- Connect to HMRC systems
- Allow you to digitally report VAT information to HMRC
- Allow HMRC to send information to you digitally
You will be able to mix and match software to meet these requirements, but it will be easier to use one product.
What to consider
Obviously, cost will play a part in how you choose accounting software for MTD, along with the size of your business and the complexity of its needs. However, ease of use for you and your team should also be considered carefully. Managing more than one software may be more costly in the long run.
If your business has not yet embraced cloud accounting and record keeping, it will be possible to use spreadsheet bridging software that extracts details from a spreadsheet for uploading to HMRC. However, advances in technology and its use in business is advancing rapidly. This will only increase. MTD creates the perfect launching point for any business that wants to remain competitive in the future to invest in cloud software for its needs.
Using Xero for MTD
While there are lots of software packages that could be used for MTD, Xero is one of the most intuitive and efficient. If you are already using Xero you won’t have to make many changes.
If you are not, you’ll be delighted by how Xero streamlines your accounting tasks for everything from submitting VAT returns to capturing receipts.
We can help identify the right software to get your business MTD-ready. Email us for the attention of our MTD guru, Tracey Grove or call us at (0)20 8819 8762 to talk through your options.
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