Making Tax Digital Software - How to get MTD ready

Key facts:

There is now a lot of MTD Software available at various price points. It ranges from accounting software that will do your accounts as well as submit MTD returns, to software designed to help you run your business and which is special to your industry but which will also does your MTD VAT return.

An example of software designed to help you run your plumbing, gas engineering, electrical, building and other trade businesses is Powered Now.

Powered Now is specifically designed to automate the administration of trade and mobile companies. It does invoicing, payment and costs but also does complex quotations, staff tracking, chat and has a sophisticated shared diary. All activities and communications with customers can be logged. So it does a lot more and provides a lot more benefits than simply doing your MTD VAT return.

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What is MTD software?

Making Tax Digital software is a great way to streamline your accounting and reduce the chances of late payments and missed deadlines. It can also speed up your account management and decrease paper clutter. Moreover, it allows you to save on storage space since you'll no longer have to store a large number of paper receipts.

While some businesses worry that the transition is too complicated, there are a number of reasons to be digital. First, MTD requires that businesses switch to accounting software that allows them to submit data directly to the HMRC interface. This is a big change for businesses, but it also brings new opportunities. By using an all-in-one platform, businesses can manage their cash flow, invoice customers instantly, and file digital tax returns. However, if you are unsure how to implement MTD, here are a few tips to get started:

Using spreadsheets can still help you stay compliant with parts of MTD. By using specialist bridging software, you can upload data from your spreadsheet to HMRC. However, this option only fulfils some MTD requirements and may require extra work to convert your data into the format required by the HMRC. Further, it's important to note that you can't use a spreadsheet to file your returns if you're not using specialist software.

There is a huge list of different VAT Software solutions that will satisfy the needs of MTD for VAT, all listed at the HMRC Making Tax Digital site. This includes the major accounting systems but also simple solutions like a spreadsheet-like web form allowing entry of invoices and costs and which will then do the MTD for VAT return.

There are also quite a number of systems that are specific to different industries. This includes systems like Powered Now which as well as supporting MTD can generate gas safety forms, electrical certificates and more.

Questions? We've got you covered! If you have any questions about VAT software or MTD do not hesitate to contact us.

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