On the 1st of April 2019 VAT-registered businesses will be required to use HMRC’s new Making Tax Digital service to keep their tax records digitally. Any VAT returns that begin after the 1st of April will need to be submitted using approved compatible software.
Troublingly, Accountancy Age published a report highlighting that “over 40% of businesses that will be affected by MTD for VAT are not yet aware that this will be the case, despite the fact that these changes will be mandatory from April 2019.” It is hoped that MTD will benefit businesses large and small by encouraging real time record keeping, limiting costly tax errors and creating more clarity across tax returns.
If you haven’t already done so, you should ensure that your accounting/financial software is approved as compatible with Making Tax Digital by HMRC before the deadline. For more information refer to the HMRC website. They have provided an introductory video on their website (we’ve attached the video below).
Our Procim® project software as a front-office tool, integrates seamlessly with MTD compliant financial software such as Sage, Xero, QuickBooks, Access Dimensions, Oracle, SAP and PeopleSoft amongst others. Procim projects and transactions are once approved, exported into the financial application without user intervention.
HMRC have published a full list of the software they’ve approved as being ready for Making Tax Digital. We’ve attached their search tool below so you can check if your current software provider is ready for the change.
Book a free demo to find out more about how Procim integrates with MTD compliant software.