Making Tax Digital is Important

Making Tax Digital for VAT came into effect from April 1st, 2019. From that date, all businesses which turnover £85,000 or above are mandated to submit tax returns digitally and by using software that has been approved by HMRC (Her Majesty’s Revenues and Customs).

There are still a small number of businesses that will have an extra seven months in which to mandate Making Tax Digital (MTD) into its accounting systems. These organisations include trusts, non-profit organisations, some charities, VAT divisions and groups. These organisations must comply from October 1, 2019.

MTD is not some challenging overhaul for the accounting business section of your company. It is a systematic and intuitive method of filing tax returns. Moreover, it is very important that the implementation is not ignored or overlooked.

MTD software has been tested a few years now by companies that have worked closely with the HMRC to make sure the accounting systems are compliant and compatible. Many organisations and businesses will have used software schemes like spreadsheets, Reckon One, Free Agent, Xero or Quick Books.

Many are still using these accounting software packages today. That in itself is not a problem. Why? MTD software has been designed to be user-friendly, compatible with even the most basic spreadsheets and it will even accept CSV files from Sage.

At BTC Software there is a MTD-compliant software kit that will help businesses easily migrate from the old ways of submitting tax returns to the new mandatory methods. It has a management dashboard that will let you know exactly when the next submissions are due to be registered with the HMRC.

There is also a VAT Report Centre integrated within the software to make this a really dynamic piece of software. It will validate and submit the data showing all VAT figures and dates off to the HMRC database at the very touch of a button.

Software Draws Data from Spreadsheets with Consummate Ease

It does not matter how those spreadsheets are set up or which tool you use. You could be using Microsoft Excel, Lotus 1-2-3 or Office 365 spreadsheets, the data will easily migrate and formulate into a VAT returns submission that will be HMRC-compliant.

All returns payments and receipts that have been generated from within the company can be viewed easily from a dashboard. BTC Software has produced both 125 Additional Returns packages and one for Practitioners too.