What is Making Tax Digital (MTD)?
Making Tax Digital is a HMRC program with an aim to digitalise the taxation system. From April 2019, the Government Gateway should not be used for submission of VAT returns, these will only be possible to submitted using MTD-compliant software.
However, it is also recommended for any change of software system to take place at the start of your financial year.
The first VAT return under the new regulations will be for the quarter ending June 2019.
What do I need to do next?
Align VAT quarter
We would highly recommend that now is also the time to realign your VAT quarter with your Year End to ensure a smooth transition to MTD.
Review accounting software
There are several systems that are compliant, and Oldfield can offer assistance with upgrading or transferring to either Sage 50 (Desktop) or Xero (Cloud).
Older versions of Sage will no longer be compatible with HMRC's requirements for digital submissions; hence all users must upgrade to Sage's monthly subscription package, or to the most recent version (under an annnual licence) and purchase an additional MTD compliant module, or consider an alternative compliant solution.
Benefits of cloud software
-
Achieve significant data entry efficiencies
-
Achieve faster reporting for better business management
-
Enhancing capacity for real-time analysis
-
Secure access to the software from anywhere at any time
-
MTD compliant
Although there are several systems available, we are recommending Xero as a cloud based alternative, that we can support and assist with implementation.
Xero integrates with 500+ cloud apps, effectively allowing you to build your own custom ERP system. Being located on the Cloud allows unlimited users to access the system anywhere at any time. There are many efficiency gains, particularly around bank entries, which allows faster reporting and real-time analysis. Not only this, it also has a low monthly subscription of just £22 / per month (including all upgrades FOC and unlimited users)
For further information on the impact of MTD, or for assistance with any of the above, including a free assessment of your software, please contact info@oldfieldadvisory.com
Share Article
You give us 30 minutes of your time. We'll give you growth and a plan
It's easy to book an initial consultation - just provide some brief details, and your preferred date and time, and we'll reply by email to confirm your appointment.
