Are you a business in the UK with a VAT threshold of £85,000 and above? No doubt you’ll have already heard about the Making Tax Digital initiative. There are many guidelines being set out by HMRC for the scheme – amongst them being the driver for businesses to install MTD-compatible software.
Do you feel like time is catching up with you? You may feel quite overwhelmed at the approaching deadline which has been set by HMRC for the 1st of April this year, but take your time! You still have a significant amount of time to prepare and set things in place using the right systems that will keep your procedures secure and efficient.
With MTD there will be a frequent submission of your returns, meaning that there will be an increased workload regarding information being processed. Before choosing accounting software, you might need to ask yourself various questions such as, is this software Making Tax Digital compliant? Is it user-friendly to both you and your clients? If not don’t worry, we can guide you through choosing the perfect software for you:
- Approval of HMRC
Your new software should be HMRC-approved. There are a number of approved MTD software suppliers that are listed by the government. HMRC itself is actively involved in the process of choosing Making Tax Digital software by providing the necessary information, but they are not creating their own software explicitly. Instead, HMRC ensures that the processes of all the approved software are compliant and streamlined.
- Integration of Data
MTD for VAT can signal an increased workload when dealing with VAT return preparations. You should be careful to select software that will seamlessly integrate with existing data from your accounts, tax, and payroll among others. This will significantly reduce the number of errors and prevent you from facing penalties which might have a huge negative impact on your business.
Understanding how new software works might be a huge challenge for many of your team. Consider investing in an expert to train you and your staff on how to maximise the new system effectively. Ensure that you get to know the importance of various elements of the new system, including how to navigate the interface and the difference between the new system and your existing one. Above all, practice makes perfect, so ensure that you work towards understanding the software better with plenty of time to experiment and, in case of any questions, feel free to reach out to your appointed expert.
- User Friendliness
It is essential to get a Making Tax Digital software that you can easily interact with. Accounting itself is hard, so the job of the software should be to make filing and integrating your data as seamless as possible. The software that you invest in should be navigated easily in order to track your taxes, liabilities and make it easy for you to file your VAT returns. The centralisation of financial information and frequent reminders of deadlines are useful features within the software that will enable you to keep your records up-to-date. It is crucial to get a platform that can adapt and update to ensure that as HMRC makes changes in future, your software will be able to evolve with these.
Choose Your MTD Software Today
Make sure that your business is prepared by choosing the ideal software solution for you! Learn more about implementing a new platform, here.