Making Tax Digital:
In previous editions of spotlight (August and September 2018) we have explained how most businesses that have turnover which exceeds the VAT Turnover threshold will need from 1 April 2019 to comply with the Making Tax Digital rules.
As this deadline is now fast approaching you should be finalising your choice of Software.
Sage
Sage has been the accounting software most used by businesses for a number of years. There are a number of versions of Sage which business owners might be using, some will be compatible for Making Tax Digital, others will need an additional module and some unfortunately will not be able to work within the Making Tax Digital regime and users will need to change their accounting software.
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Compatible
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Need MTD Module
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Not compatible
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Sage 50 cloud professional
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TAS Books
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Sage 50 Accounts plus
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Sage 50 cloud Standard
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Sage 1000
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Sage 50 Accounts professional
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Sage 50 cloud essentials
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Sage 200 cloud (earlier versions)
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Sage 50 Accounts
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Sage Business Cloud accounting
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Sage Instant Accounts
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Sage Business cloud accounting start
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First Books
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Sage 200 cloud (latest release)
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Line 500
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Quickbooks online
The position with Quickbooks is a little more straightforward as their desktop version will not be supported for Making Tax digital and you will need to move to one of their online versions.
Other accounting software
There is also other accounting software which has been increasingly used over recent years, Xero being the most notable which was developed in Australia where they introduced digital capabilities to administer GST (Goods Sales Tax) in 2000 which was an international forerunner to Making Tax Digital.
It is also worth noting that if you are a business customer of Natwest then they are offering their customers subscriptions to Freeagent at no extra charge. This software might be sufficient for some business’s needs. Freeagent was acquired by the RBS group of which Natwest is a part in March 2018.
Bridging software
If despite the increases in usability of online accounting software many business owners will be reluctant to move to a fully cloud based product. For these, as well as those who use non-MTD compatible accounting software there might be a solution with bridging software which will link from either spreadsheets or export files from other accounting software into an on-line bridge which will then connect directly to HMRC.
If you are unsure how to proceed with Making Tax Digital, whether it applies to you, or whether you need to change the software you use for record keeping or making VAT submissions please do get in touch. E-mail Mandy@beatons.co.uk or call 01473659777 to arrange a meeting.