MTD Software / Making Tax Digital Software

Key facts:

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There is now a lot of MTD Software available at various price points. It ranges from accounting software which 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.

Examples of accounting software are Xero and Quickbooks Online (QBO).

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.

Fuller explanation:

There is a huge list of different MTD 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 forms 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.

The greatest advantage will be gained by adopting an accounting system or a more specialised solution as these are likely to have other benefits. The greatest benefit from an accounting system will arise if you have your own in-house accounting department.