From 1 April 2019 businesses with an annual taxable turnover of more than £85,000 will be required to maintain digital records for VAT and report to HMRC on a quarterly basis. With plans to roll out digital reporting to those business under the VAT threshold from April 2020.
Those businesses affected by the requirements will need to invest in the relevant
software to allow their records to be both recorded and submitted in the correct format for HMRC. HMRC has confirmed that business will still be allowed to maintain spreadsheets for record keeping, it’s important that they can submit the appropriate information for MTD requirements.
HMRC is currently working with software suppliers who have stated that they want to provide software that complies with MTD requirements. HMRC are working with these suppliers to check that their software solutions are compliant with the new requirements.
In July 2018, HMRC released a list of 18 software suppliers who have already demonstrated a prototype of their software to HMRC and have tested their products in HMRC’s test environment. HMRC have promised to update this list as further suppliers test their products and prove that they meet the necessary requirements.
Amongst the ‘approved’ 18 suppliers is IRIS, Clayton & Brewills chosen supplier of accounting software solutions. We have worked closely with IRIS for a number of years to provide their solutions to our clients.
One of our preferred solutions is KashFlow, which is an extremely cost-effective and easy to use accounting system that provides everything you need to not only comply with MTD requirements, but to stay on top of your book keeping and accounting.