MTD for VAT – Making Tax Digital
AM-Accounting were all geared up, when Making Tax Digital VAT kicked in on 1st April 2019. We have been serving our clients now for many months on MTD VAT ; keeping a close eye on any future Digital Tax elements on the horizon.
COVID 19 has perhaps but some delay into any plans for Digitisation of Tax at HMRC – they are extremely busy with many aspects including Furloughing and SEISS Self Employment Income Support Schemes during the pandemic.
We have made sure our clients meet their other Digital compliancy with HMRC. Thus, as aforementioned : It is planned other taxes will become Digital in the UK – these are being rolled out , in the next few years, we expect now 2021 onwards.
MTD for VAT started back on 1st April 2019 For VAT businesses in the United Kingdom
- There are 2.65 million VAT Registered Businesses in the UK
- Currently it is estimated that 60% currently use Excel to prepare their VAT Returns before submission to HMRC.
- There are a few reasons why Businesses in the UK are still using Excel, the main driver being Cost.
- The cost of using Excel is far lower than using other Bookkeeping Software on the market.
Making Tax Digital requires a Bridging software when using Excel. You cannot submit VAT returns under Making Tax Digital using the existing HMRC portal for VAT with the 9 boxes.
What the Bridging software does is create an Intermediary link between your Excel and HMRC, thus the Bridging Software is an API (Application Programming Interface).
As Accountants we are obviously extremely knowledgeable about Excel.
However we are a Practice that are looking to the future. As such for VAT, we currently partner with two of the UK’s most trusted and respected firms when it comes to Cloud Accounting.
These softwares do not require Bridging Software and have all the functionality and reporting skills of Excel style VAT Reporting built in –
Therefore, be rest assured, we are future proof and you will always be in safe hands with our Accountancy Practice, should you choose our excellent quality MTD Compliant Accountancy services.
All staff are Advanced Quickbooks Proadvisor, Wave Accounting and Sage One Certified Advisor Accredited. We are also au fait with Xero.