MTD – Looking at the software options
The biggest question many businesses have regarding Making Tax Digital is “Will my existing software work or do I need to upgrade / buy something else?”
The good news is that if you are currently using one of the major cloud based accounting packages such as Xero, Sage or FreeAgent, your software is already compatible.
You may however, need to change the way you submit returns so it could be time to review the training material for each on how to go about sending your VAT returns via your software. We have provided some links at the bottom of this page for VAT training for the major suppliers.
If you are running on older desktop software such as Sage 50 or Quickbooks you will need to check which version you are running to see if you need to upgrade. Below we have listed the major accounting software suppliers and the current version that is MTD compatible.
If you are using an older, incompatible version of your accounting software (i.e. Sage Desktop v23) you have three options available;
-Upgrade to the latest version of the software
-Use bridging software to import the return and then submit
-Speak to Cowgills about how our MTD solutions may be able to help
Remember, Making Tax Digital applies to all businesses that are registered for VAT and over the current VAT turnover threshold of £85,000 a year. The deadline is now less than 20 weeks away, so if you are unsure on any aspect of what it means for your business speak to your Cowgills representative today.
Here’s some useful links to help you further.
XERO – https://central.xero.com/s/article/File-a-VAT-Return-with-HMRC?userregion=true
FreeAgent – https://support.freeagent.com/hc/en-gb/articles/115001220190-File-your-VAT-return-online
Sage Cloud – https://help.sageone.com/en_uk/accounting/extra-vat-create-return-uk.html
HMRC link for suppliers with compatible software in development https://www.gov.uk/guidance/software-for-sending-income-tax-updates#Dev
The information was correct at time of publishing but may now be out of date.