Making Tax Digital

What has happened?

It's finally here! After years of planning, testing and worrying, Making Tax Digital (MTD) has now been introduced for VAT registered businesses in the UK. That's right, the HMRC have taken a major step forward in their ambition to become one of the most digitally advanced tax administrations in the world.

What does this mean?

. It means that VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns for VAT periods that started on or after 1 April 2019.The first digital submission will need completed in July 2019. Pressure has been applied to accounting software providers to ensure their solutions are compatible withMaking Tax Digital, making choosing the right software even more important.

What do you do next?

If you're a VAT registered business earning above the £85,000 threshold, ensuring you have a MTD-compliant accounting software needs to be your first priority. You will need to maintain your accounting records via digital means such as software. If you are currently using paper records, this will not satisfy the new legal requirements in Tax legislation. You will now need to submit VAT returns to the HMRC using a software that can access the HMRC's API platform.

What do you do and where do you go if you have nothing in place?

Simple. Visit CompareYourSoftware.com.

You could search on google and the hundreds of websites it presents. You could also try numerous different trials and hope that the ones you've picked will cater for your needs. Or you could save all that time and effort and visit CompareYourSoftware.com. CYS compares hundreds of accounting software products so you don't have to. Tell our comprehensive comparison tool what you need and we'll provide you with all the products that meet those needs. So if you need an MTD-compliant accounting software that can produce unlimited invoices, simply enter those requirement and we'll provide you with all the products that allow that functionality. CYS then makes it easy to compare the different aspects that are essential when choosing the right software for you and your business, whether that be price, support or functionality.

If I already have accounting software, how do I know if it is compliant with MTD?

The simple answer is to go direct to your software provider. But CYS will not only tell you if your current accounting software is compliant with MTD, it will also tell you if it truly is the right software for you and your business.

How do I know if my current accounting software is right for me?

Previously, there was no way of knowing, even with extensive training and years of experience of using the software, there may be another piece of software much more suited to you and your business needs that you had no idea existed. Now, you have CompareYourSoftware.com! You tell us which provider and software you are using and we will help you compare with the best alternatives on the market. You tell us what you need and we'll tell you what's suitable. You can then decide the best solution for you based on functionality, price, support or our customer reviews. You may find more than one software provider that offers the same functionality of your current provider but at a cheaper cost.